The State of Michigan Retirement System has taken a pretty interesting step into the crypto world. On July 26, they filed a 13-F form with the United States Securities and Exchange Commission (SEC) and revealed they’ve bought 110,000 shares in the ARK 21Shares Bitcoin ETF (ARKB). This is worth around $6.6 million. It’s showing us how much institutional investors are getting into digital assets.

A Growing Trend Among Pension Funds

Eric Balchunas, who’s a senior ETF analyst at Bloomberg, pointed out this move is pretty significant. He thinks Michigan’s decision is a big shift for pension funds looking at Bitcoin ETFs.

But Michigan isn’t the only one doing this. Earlier this year, the State of Wisconsin Investment Board (SWIB) put $164 million into Bitcoin through BlackRock’s IBIT ETF and Grayscale’s Bitcoin Trust (GBTC). And then, Jersey City’s Mayor Steven Fulop said the city’s pension fund will invest 2% in Bitcoin ETFs. This shows more and more trust in digital currencies.

Following the Leaders

Michigan’s investment is a tiny part (0.004%) of its big $143.9 billion pension fund, but it’s still a big step. It’s following what Wisconsin did with their $99 million Bitcoin investment through BlackRock’s IBIT ETF. Alex Valaitis, the Cofounder of Chateau Capital thinks that by 2028, all 50 states might have some crypto in their pension funds. It’s interesting to see more states seeing the benefits of digital assets. Even French Pension plan has Bitcoin ETN.

Market Performance and Interest

Since the SEC approved spot Bitcoin ETFs on U.S. exchanges in January, these have done really well. They’ve brought in over $17 billion in inflows, according to Farside investor data. This shows that institutions are really interested in cryptocurrencies. For example, the U.S. Bitcoin Spot ETF got $75 million in just two days, showing high demand and confidence in these assets.

Strategic Implications for the U.S.

Putting Bitcoin in Michigan’s pension fund is more than just financial diversification; it shows a bigger focus on digital assets. There are even talks about the U.S. maybe adopting Bitcoin as a strategic reserve asset. This would mean the U.S. Treasury holding a lot of Bitcoin, similar to how they hold gold and foreign currencies.

Conclusion

Michigan’s investment in the ARK 21Shares Bitcoin ETF is a big moment for institutional adoption of cryptocurrencies. With states like Wisconsin and cities like Jersey City doing the same, putting Bitcoin into public pension funds is becoming more common. This acceptance and integration of digital assets into traditional investments highlight the potential of cryptocurrencies and set the stage for more innovation and investment in the crypto space.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed