The State of Michigan Retirement System, managing $13.6 billion in assets, has taken a significant step into cryptocurrency. In a recent SEC filing, Michigan’s pension fund disclosed a $10 million investment in Grayscale’s Ethereum Trust (ETHE), marking its first substantial Ethereum investment, now surpassing its Bitcoin holdings.
Michigan Fund Expands with Grayscale’s Ethereum Trust Shares
Additionally, the fund purchased $1.1 million in shares from Grayscale’s Ethereum Mini Trust, making Michigan the first state pension fund in the U.S. to add Ethereum ETFs. This move signals Ethereum’s growing acceptance within traditional finance circles.
This follows Michigan’s earlier investment in July, where the fund acquired $6.6 million in ARK 21Shares Bitcoin ETF shortly after SEC approval.
Grayscale’s ETHE offers exposure to Ethereum’s price performance without requiring direct ownership, using a fractional ownership model. However, ETHE has faced challenges since its ETF conversion in July 2024, with initial outflows of $484 million and total outflows exceeding $2 billion by August.
Meanwhile, the Ethereum ETF market faces increasing competition, with firms like BlackRock and Fidelity introducing their own Ethereum ETFs with significantly lower fees. Grayscale currently charges a 2.5% fee, but competitors are expected to offer lower fees post-waivers.
Semler Scientific Expands Bitcoin Holdings
Semler Scientific, a healthcare tech firm, announced the acquisition of an additional 47 Bitcoin for $3 million, raising its total holdings to 1,058 BTC. This accumulation aligns with Semler’s strategic financial approach amid rising inflation and global tensions, as corporations explore Bitcoin as a reserve asset.
Semler’s stock recently saw fluctuations, with a 2.3% dip to $29.97 on Monday, followed by a 3.4% after-hours increase. Over the past month, its stock has appreciated 18.1% but remains down 32.1% year-to-date.
The fund’s recent moves mirror similar strategies from other companies, like Metaplanet’s active Bitcoin acquisition to strengthen its treasury reserves, underscoring the growing trend among institutional investors.
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