The Michigan State Retirement System has invested $6.6 million in ARK 21Shares’ ARKB Bitcoin ETF.
Investing in exchange-traded funds, a statement On Form 13-F filed with the Securities and Exchange Commission, that amount represents a small portion — 0.004% — of the state’s massive $143.9 billion pension fund.
Michigan’s decision reflects a broader trend toward institutional adoption of Bitcoin (BTC), similar to other states.
The Wisconsin Investment Board recently announced a $99 million investment in Bitcoin through BlackRock’s IBIT ETF.
Jersey City also has Advertise New York City is planning to add Bitcoin ETFs to its retirement fund, with Mayor Steven Fulop expressing strong support for cryptocurrency investments.
Institutional and government investment
The surge in institutional interest in Bitcoin ETFs is astonishing. Since the launch of the US Bitcoin Spot ETF in January, the market has gained significant momentum, with $75 million in inflows recorded in the past two days alone.
The decision to include bitcoin in the Michigan pension fund’s portfolio is a major step toward institutional focus on bitcoin. There are also talks about the United States adding a strategic bitcoin reserve.
If the United States adopts Bitcoin as a strategic reserve asset, it may be able to leverage its status as the largest nation-state holding Bitcoin. This would require the US Treasury to hold large amounts of Bitcoin as part of its reserve portfolio, similar to what it already does with gold or foreign currencies.
With more government pension funds and traditional financial institutions diversifying their portfolios with digital assets, the mainstream adoption of cryptocurrencies appears to be gaining momentum.
