Michigan State Pension Fund Invests $6.6M in Bitcoin Through ARK 21 Shares Bitcoin ETF (ARKB)

Following the approval of Bitcoin ETFs, institutional investors have become more comfortable with dipping their toes into the newfangled asset class.

The state pension fund of Michigan has invested $6.6 million in Bitcoin via an ETF, joining other institutional investors in exploring the leading cryptocurrency.

The tenth largest U.S. state is now the latest to add some crypto to its vast pension fund. According to a recent report by Bloomberg, the Michigan State Treasurer’s Office has invested $6.6 million in Bitcoin (BTC) through the ARK 21 Shares Bitcoin ETF (ARKB). This move comes as institutional investors are increasingly showing interest in BTC following the approval of Bitcoin ETFs.

As reported by U.Today earlier this year, MicroStrategy CEO Michael Saylor predicted that pension funds would need "some Bitcoin." Now, it seems that his prediction is slowly coming true.

However, due to its relatively small size, the recent investment had a minimal impact on the Bitcoin price. The leading cryptocurrency is currently trading at $67,415 after coming close to surpassing the $68,000 level earlier today.

Back in May, Wisconsin's pension fund made a significant institutional investment in Bitcoin by acquiring $160 million worth of the leading cryptocurrency through BlackRock's IBIT.

The Jersey City pension fund is also planning to make an institutional investment in Bitcoin ETFs. Thousands of American pension funds collectively manage a total of $27 trillion.

In addition to the U.S., pension funds around the world are also showing interest in Bitcoin. For example, in March, it was reported that Japan's government pension fund was considering adding the leading cryptocurrency to its investment options.

While institutional investors are now showing more interest in crypto, some pension funds learned painful lessons during the previous bull market cycle.

For example, the Ontario Teachers’ Pension Plan famously lost $90 million after betting on the now-collapsed FTX exchange. It became one of the first blue-chip investors to embrace the lightly regulated industry. However, the OTPP chose to avoid crypto after writing off its FTX stake, even though the investment had a very limited impact on its total assets, which amount to $190 billion.

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