The Michigan State Retirement System has nearly tripled its investment allocation to Bitcoin ETF, reflecting the increasing acceptance of digital assets within the institutional sector.
The Michigan State Retirement System has announced a significant increase in its Bitcoin portfolio, demonstrating enhanced confidence from institutional investors in digital assets. According to filings with the U.S. Securities and Exchange Commission (SEC), as of the end of Q2, the fund holds 300,000 shares of ARK 21Shares Bitcoin ETF (ARKB) with an estimated value of 10.74 million USD, nearly tripling from the previous report of 110,000 shares.
This move reflects an important structural trend: the spot Bitcoin ETFs approved by the SEC since January 2024 are becoming effective intermediary tools, facilitating financial institutions' access to the cryptocurrency market.
With the current price of ARKB, this investment is valued at approximately 11.3 million USD. At the same time, the fund maintains its unchanged position in Grayscale Ethereum Trust (ETHE) with 460,000 shares, estimated to be worth 9.6 million USD.
Portfolio of the Michigan State Retirement System as of June 30, 2025. Source: U.S. Securities and Exchange Commission (SEC)
Michigan is not an isolated case in the wave of institutionalizing the digital asset market. The Wisconsin State Investment Board had previously attracted attention with a 321 million USD investment in Bitcoin through BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC). These decisions demonstrate that pension funds - traditionally known for their cautious investment strategies - are viewing Bitcoin as a potential portfolio diversification tool.
Investment activities from state pension funds are taking place against the backdrop of the market recording record capital flows. In mid-July, Bitcoin ETFs in the U.S. attracted over 1 billion USD in net capital in two consecutive sessions - an unprecedented record. This strong capital flow created a 12-day streak of positive net capital flow, coinciding with Bitcoin setting a new historical peak above 123,000 USD.
According to data from Bitbo, spot Bitcoin ETFs in the U.S. currently manage over 1.29 million BTC, equivalent to a total value of approximately 146.5 billion USD. This growth is not limited to Bitcoin as Ethereum ETFs are also witnessing strong growth following the initial launch phase.
BlackRock's iShares Ethereum ETF has become one of the three ETFs to reach the 10 billion USD asset management milestone the fastest in history. Accumulation momentum from institutions has supported Ethereum's price to surpass 3,800 USD, completing an increase of over 110% since early May, affirming that the trend of digital asset adoption is expanding beyond Bitcoin.
