Key Points
- Michigan becomes the first US state pension fund to invest in an Ethereum ETF.
- Michigan’s pension fund holds approximately 460,000 shares in the Grayscale Ethereum Trust, valued at around $10.07 million.
Michigan’s pension fund has made a significant move by investing in an Ethereum Exchange Traded Fund (ETF). This marks the first time a US state pension fund has made such an investment.
Investment Details
Matthew Sigel, Head of digital assets research at VanEck, announced that Michigan is now one of the top five holders of both the Grayscale Ethereum Trust Fund and Grayscale’s Ethereum Mini Trust.
A recent 13F filing with the SEC revealed that Michigan’s pension fund holds an estimated 460,000 shares in the Grayscale Ethereum Trust, worth roughly $10.07 million. The fund also owns 460,000 shares in the Grayscale Ethereum Mini Trust, valued at approximately $1.12 million.
In addition to Ethereum, the fund has invested in Bitcoin. It holds 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at around $7 million. This investment strategy highlights Michigan’s commitment to diversifying its portfolio with digital assets.
Ethereum ETFs Performance
The performance of ETH ETFs has been less impressive compared to BTC ETFs. Data from Lookonchain showed a significant net outflow from Ethereum ETFs on November 4th, with a decrease of 14,206 ETH worth over $34 million.
Despite this, the Grayscale ETHE fund still holds a substantial 1,576,248 ETH, valued at approximately $3.84 billion. Fraside Investors’ insights show a total cumulative net outflow of over $500 million, indicating caution around Ethereum ETFs despite major purchases by entities like Michigan.
Michigan’s latest investment has caught the attention of industry experts. Eric Balchunas, Bloomberg’s senior ETF analyst, noted Michigan’s considerable investment in Ether ETFs compared to Bitcoin ETFs. Ryan Sean Adams, co-founder of Bankless, also commented on the development, highlighting the increasing acceptance of Ethereum among institutional investors.
Meanwhile, Ethereum’s price performance has been less than impressive recently. At the time of writing, the altcoin traded at $2,425, showing a decline of over 7% over the past week. The yearly appreciation has been modest, with ETH rising by approximately 30%. For Ethereum bulls, a flip of the $2,662 resistance is necessary to counter the bearish stronghold.
As state pension funds and other large investors continue to explore cryptocurrency opportunities, the landscape for Ethereum ETFs may evolve, potentially driving greater adoption and stability in the sector.
