The State of Michigan Retirement System has invested $6.6 million in a Bitcoin exchange-traded fund (ETF) called ARK 21Shares’ ARKB. This information was shared in a form filed with the U.S. Securities and Exchange Commission (SEC). Even though $6.6 million sounds like a lot, it’s just a small part (0.004%) of Michigan’s total $143.9 billion pension fund.
Following the Trend
Michigan’s investment is part of a larger trend where more states are putting money into Bitcoin. For example, Wisconsin recently invested $99 million in Bitcoin through BlackRock’s IBIT ETF. Jersey City is also planning to add Bitcoin ETFs to its pension fund, with Mayor Steven Fulop strongly supporting cryptocurrency investments.
Growing Interest in Bitcoin ETFs
Interest in Bitcoin ETFs has been growing. Since the U.S. introduced the Bitcoin Spot ETF in January, the market has seen a lot of activity, with $75 million invested in just the past two days. Michigan’s investment is a significant step towards more widespread acceptance of Bitcoin among institutions.
Future Plans for Bitcoin Reserves
There is also talk about the U.S. creating a Strategic Bitcoin Reserve. This would make the U.S. the largest holder of Bitcoin among countries, similar to how it holds large amounts of gold and foreign currencies.
Increasing Adoption of Cryptocurrencies
As more state pension funds and financial institutions invest in digital assets like Bitcoin, the use and acceptance of cryptocurrencies keep growing rapidly.
