Ethereum ETFs see $10m patronage from Michigan State

Michigan State Pension Fund Makes First Ethereum ETF Purchase, Becomes Top Holder of Grayscale ETH ETFs

Michigan’s state pension fund made headlines by becoming the first to purchase Ethereum exchange-traded funds (ETFs), acquiring shares from two funds offered by Grayscale. According to a filing with the Securities and Exchange Commission (SEC), Michigan has now become one of the top five holders of Grayscale’s spot Ethereum ETFs. The state’s Form 13F filing revealed that Michigan holds a combined total of $10 million in Grayscale’s Ethereum (ETH) and Ethereum Trust (ETHE) products.

Bloomberg ETF analyst Eric Balchunas pointed out that Michigan now holds more shares in Ethereum ETFs than in its Bitcoin (BTC) ETFs, noting that the state’s pension fund owns $10 million worth of Ethereum ETFs compared to just $7 million in Bitcoin ETFs. This is particularly notable given the strong performance of Bitcoin, as Ether has been underperforming in recent months.

Mixed Reactions to Michigan’s Ethereum Investment

The crypto community responded with mixed views to Michigan’s Ethereum ETF purchase. While some saw it as a bullish sign for Ethereum, others questioned the decision to allocate less capital to Bitcoin ETFs.

Rug Radio creator Daito Yoshi suggested that Michigan’s move might be a strategic one, possibly paving the way for other institutional investors to follow suit with Ethereum-based products. On X, he mused, “I wonder where other institutions will choose to allocate to catch up with BTC gains once we hit $100K and they realize they’ve missed the BTC boat.”

Institutional Interest in Crypto ETFs Grows

While Bitcoin ETFs dominate the crypto investment space, Ethereum ETFs are starting to see institutional attention. As of now, over $70 billion is held in Bitcoin ETFs, while Ethereum ETFs trail behind with less than $10 billion in assets under management. However, the rise in institutional interest for crypto ETFs is clear, with traditional finance firms having invested approximately $13 billion into Bitcoin ETF shares this year alone.

Michigan’s pension fund investment represents a significant step for Ethereum, as institutional interest in Ethereum ETFs grows—albeit more slowly compared to Bitcoin.