Ethereum ETFs recorded their first State Pension Fund purchase, as Michigan acquired shares from two funds offered by Grayscale.
According to a Securities and Exchange Commission filing, the State of Michigan became a top five holder of Grayscale’s spot Ethereum (ETH) exchange-traded funds. Michigan’s Form 13F disclosed that the state owns a cumulative $10 million of Grayscale’s ETH and ETHE products.
Bloomberg ETF expert Eric Balchunas noted that Michigan held more shares in ETH ETFs than in its spot Bitcoin (BTC) ETF holdings.
Not only did Michigan’s pension buy Ether ETFs but they bought more then they did of Bitcoin ETFs, $10m vs $7m. This despite BTC being up a ton and Ether in the gutter. Pretty big win for ether which could use one.
Eric Balchunas, senior Bloomberg ETF analyst
The crypto community expressed mixed reactions to this first state fund investment in ETH products. Some praised the move as bullish for Ethereum, while others criticized Michigan’s government investors for allocating less to Bitcoin ETFs.
Rug Radio creator Daito Yoshi likened the move to a strategic business decision. Yoshi suggested on X that other government-backed investors may also deploy capital to ETH products.
I wonder where other institutions will choose to allocate in order to catch up with BTC gains once we hit $100K and they realize they’ve missed the BTC boat.
Daito Yoshi, Rug Radio creator
Bitcoin and Ethereum ETFs have been trading for months, with BTC funds as clear leaders in the crypto investment space. Over $70 billion is held in Bitcoin ETFs compared to less than $10 billion in Ethereum funds.
However, institutional interest in crypto ETFs has generally grown. Traditional finance firms have invested about $13 billion on Bitcoin ETF shares alone this year.
