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Michigan’s state pension fund tripled its ARK Bitcoin ETF holdings to 300,000 shares in Q2.
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The fund also holds $13.6M in Grayscale’s Ethereum Trust.
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Despite recent ETF outflows, institutional interest in crypto remains strong.
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These investments still make up less than 0.1% of the fund’s total portfolio.
Pension Fund Increases Bitcoin Exposure
Michigan’s State Retirement System has significantly boosted its investment in Bitcoin. According to a recent SEC filing, the fund now owns 300,000 shares of the ARK 21Shares Bitcoin ETF, worth about $11.4 million. That’s up from just 100,000 shares at the end of Q1 2025.
The pension fund manages $19.3 billion in assets and has been gradually adding crypto exposure to its portfolio. This move comes at a time when many institutional investors are reconsidering their positions in crypto ETFs.
Ethereum Investment Remains Steady
Alongside its Bitcoin ETF position, the fund also holds 460,000 shares of Grayscale’s Ethereum Trust (ETHE), valued at $13.6 million. This stake hasn’t changed since it was first reported in September 2024, suggesting a long-term strategy for Ethereum as well.
Why Institutions Are Still Interested
Even though crypto ETFs saw over $1.4 billion in outflows recently, experts believe this is only a short-term dip. Some funds, like ARKB, saw only minor redemptions compared to others.
Investment experts say pension funds typically analyze long-term risk versus return using metrics like the Sharpe ratio. Bitcoin has been on their radar for some time, and small, cautious entries into the asset class are becoming more common.
Crypto Still a Tiny Part of the Portfolio
Despite the growing interest, the fund’s crypto holdings still make up less than 0.1% of its total portfolio. This shows that while crypto adoption among pension funds is growing, it remains very conservative for now.
