The State of Michigan Retirement System has become the first pension fund to publicly disclose holdings in Grayscale’s Ethereum exchange-traded fund (ETF), a significant milestone for the Ethereum-based financial instrument that launched in July.
Michigan Pension Fund’s Ethereum Investment Beats Bitcoin
According to a recent 13F filing, the Michigan pension fund holds 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million as of the end of the third quarter. This makes Michigan one of the top five holders of the fund, according to VanEck’s Matthew Sigel. The filing also revealed a holding of 460,000 shares in the Grayscale Ethereum Mini Trust ETF (ETH), valued at around $1.1 million.
This move underscores a growing trend among US states and pension funds to invest in crypto and related products. Earlier this year, the State of Wisconsin Investment Board disclosed nearly $100 million in holdings of BlackRock’s spot Bitcoin ETF. Last week, Florida’s chief financial officer revealed approximately $800 million in crypto-related investments, with potential for growth depending on the presidential election outcome. The Michigan Retirement System had previously reported around $7 million in spot Bitcoin ETF holdings.
Bloomberg Senior ETF Analyst Eric Balchunas highlighted the significance of Michigan’s investment, noting on X (formerly Twitter) that the pension fund invested more in Ethereum ETFs than Bitcoin ETFs ($10 million vs. $7 million), despite Bitcoin’s stronger recent performance and Ethereum’s struggles. He called it a “pretty big win for ether which could use one.”
