A new 13-F filing shows that the State of Michigan Retirement System has a huge holding in the Ethereum ETF. The pension agency holds 460,000 shares of the Grayscale Ethereum Trust (ETHE). By the end of the third quarter, the holding had grown to a valuation of $10 million.
Michigan Pension Fund Favors Ethereum ETF Over BTC
This new investment makes it the first pension fund to make such a move since the Ethereum ETFs launched in America.
Additionally, the Michigan Pension Fund has become one of the top five holders of the fund. In addition to the ETHE holding, the agency holds 460,000 Grayscale Ethereum Mini Trust ETF (ETH) shares. Notably, its exposure to ETH is equivalent to about $1.1 million.
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Eric Balchunas, a Senior ETF analyst at Bloomberg, pointed out that Michigan Pension Funds’ Ether ETF far outweighs its Bitcoin ETF. As a result, he tagged it as a big win, which Ethereum needs.
“Not only did Michigan’s pension buy ether ETFs, but they bought more than they did of bitcoin ETFs, $10 million vs $7 million, this despite BTC being up a ton and ether in the gutter,” Balchunas explained.
Michigan Pension Fund Buyup: The Reactions
X user Dude thought it wise to mention that Michigan Pension Fund’s choice to bag more Ethereum ETFs than its Bitcoin counterpart does not change the degree of dominance between the two underlying cryptocurrencies. He pointed out that Bitcoin ETF products have a larger share of dominance, as evidenced by the volume of inflows that it consistently records.
Many US states and pension funds have long demonstrated their appetite for crypto-based investments. About six months ago, information about the State of Wisconsin Investment Board’s spot Bitcoin ETF exposure came to the limelight. Notably, the board held up to $100 million of the product approved by the US SEC in January.
According to Florida’s Chief Financial Officer Jimmy Patronis, the state also holds about $800 million in “crypto-related” investments. It even plans to grow the stash, although this move highly depends on who wins the upcoming presidential election, which is only a few hours away.
The State of Michigan Retirement System also once disclosed owning about $7 million of spot Bitcoin ETF.
Ethereum Growth Catalysts To Watch
From the public’s reaction, it is easy to tell that Ethereum has not attained its full potential, even with an ETF launch. For instance, ETH price was currently trading at $2,427.46, a far cry from the $4,000 price level anticipated for the coin. Analysts believe that a few catalysts could ignite a price rally for Ethereum.
The U.S. Federal Reserve is preparing to inject an estimated $800 billion in liquidity into the market. It is expected that this move will bring a significant boost to the second-largest cryptocurrency by market cap. In addition, the result of the elections could play a part in boosting Ethereum’s position in the market.
Beyond this, the digital currency is undergoing intensive upgrades that can drive its adoption. Overall, its Layer-2 ecosystem might also play a role in boosting its attractiveness for more ETF adoption.
