Michigan becomes first state pension fund to invest in Ethereum ETFs with $11M stake

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The State of Michigan Retirement System has become the first US state pension fund to invest in an Ethereum ETF, disclosing an $11 million stake in Grayscale’s Ethereum trusts in an SEC filing.

According to the latest SEC filing, Michigan’s pension fund holds 460,000 shares in the Grayscale Ethereum Trust (ETHE), valued at approximately $10.07 million, along with an additional 460,000 shares in the Grayscale Ethereum Mini Trust, worth around $1.12 million.

Together, these positions total nearly $11 million dedicated exclusively to Ethereum ETFs, setting Michigan apart as most state pension funds have primarily focused on Bitcoin investments.

Michigan’s diversification into Ethereum reflects a growing interest in the broader potential of digital assets.

Tim Ogilvie, Kraken’s Global Head of Institutional, noted that “milestones like today highlight the steady trend toward investor allocation into the asset class.”

He emphasized that institutional adoption, while still early, is accelerating as investors seek the returns seen by pioneering funds.

“This could open doors to a broader range of cryptocurrencies, including smart contract platforms and infrastructure layers with global utility,” Ogilvie added.

In addition to its Ethereum holdings, Michigan continues to maintain its Bitcoin investment with 110,000 shares in the ARK 21Shares Bitcoin ETF, valued at approximately $7 million, as disclosed in its latest SEC filing.

Jimmy Patronis recently advocated for including Bitcoin in Florida’s state retirement system, signaling that many states are eyeing crypto as a viable investment for pension funds.

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