The State of Michigan Retirement System has allocated $6.6 million towards its investment in ARKB, a Bitcoin exchange-traded fund operated by 21Shares. The investment constitutes approximately 0.004% of the $143 billion held by the state in its pension fund.
It reflects the increasing exposure and acceptance of spot Bitcoin ETFs in the United States. In January 2024, the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs to be traded. This decision expanded the use of Bitcoin and attracted the attention of institutional investors.
Subsequently, spot Bitcoin ETFs have gathered a total of $59.4 billion in net assets, or approximately 4.59% of the whole Bitcoin supply. The US market for spot Bitcoin ETFs has had net inflows exceeding $17.54 billion.
The acquisition of Bitcoin ETFs by the State of Michigan’s pension fund indicates their increasing interest in and acceptance of such investment vehicles. Bitcoin is poised to receive increased focus this week due to the Bitcoin 2024 convention taking place in Nashville, Tennessee, where Donald Trump is slated to deliver a speech.
Bitcoin has had a significant increase of over 5% within the last 24 hours, bringing its value close to $68,000. There is a possibility that the price may approach the $70,000 level again and potentially surpass the highest point it reached in March.
Additionally, Mayor Steven Fulop of Jersey City has declared intentions to deploy a segment of the city’s pension fund towards Bitcoin ETFs, indicating a notable change in the city’s financial approach to incorporating crypto.
