Michigan Pension Fund Goes Big on Bitcoin: Triples ETF Bet to $11.4M Amid Crypto Surge

Wall Street's institutional FOMO just got a Midwestern accent.

Michigan's state pension fund—not exactly known for crypto cowboy antics—just tripled down on Bitcoin ETFs, plowing $11.4 million into the space last quarter. Someone's been reading the 'digital gold' memos.

From bonds to blockchain

The move signals a quiet revolution: pension funds, typically allergic to volatility, are warming to crypto's siren song. Maybe those 10% Treasury yields just aren't cutting it anymore.

The cynical take

Of course, this could just be another case of late-cycle chasing—because nothing screams 'prudent fiduciary duty' like piling into an asset class after a 200% run-up. But hey, at least they didn't buy the top... probably.

One thing's clear: when pension managers start gambling with Bitcoin, the institutional dam isn't just leaking—it's bursting.

Michigan Joins Wave of US Pensions Doubling Down on Crypto

The MOVE places Michigan among a growing cohort of U.S. state pension funds increasing exposure to crypto-linked assets.

The State of Wisconsin Investment Board, for instance, now holds over 6 million shares of BlackRock’s iShares bitcoin Trust (IBIT), worth approximately $387.3 million.

Despite this growing interest, Bitcoin ETFs recently experienced four straight days of outflows, totaling $1.4 billion, according to Farside Investors.

Bitcoin spot ETFs saw a net outflow of $196.18 million on August 5, marking the fourth consecutive day of withdrawals.

On August 5, spot Bitcoin ETFs saw $196M in net outflows, marking four consecutive days of net outflows, led by Fidelity ETF FBTC ($99.11M out). Ethereum spot ETFs recorded a total net inflow of $73.22M, led by BlackRock’s ETHA with an inflow of $88.77M. https://t.co/Y20quaWRgy pic.twitter.com/0beAarb0HR

Fidelity’s FBTC and BlackRock’s IBIT led the outflows, while Grayscale’s GBTC also posted losses.

FBTC lost nearly $100 million but still holds $22.86 billion in assets, with $11.94 billion in cumulative inflows. IBIT remains the largest by AUM at $83.81 billion. No activity was recorded for ARKB, BITB, or HODL, reflecting a cautious market stance across some funds.

Despite recent exits, total cumulative inflows across U.S. Bitcoin ETFs stand at $53.65 billion, with ETFs holding about 6.46% of all Bitcoin.

ARKB, the ETF held by Michigan, recorded just one day of outflows during that period, $5.1 million on Friday.

Pension Funds Could Push Bitcoin to $200K by 2025

Standard Chartered, in a February note, projected Bitcoin could reach $200,000 by the end of 2025, with pension funds expected to be key drivers.

“We expect institutional flows into Bitcoin in 2025 to exceed 2024 levels,” the bank wrote, pointing to long-only funds such as state pensions as the next major inflow source.

In June, Billionaire Philippe Laffont, founder of Coatue Management, also included Bitcoin in his “Fantastic 40,” a handpicked list of what he considers the top investment opportunities for the next five years.

The hedge fund billionaire ranked Bitcoin alongside Microsoft, Nvidia, Amazon, and Meta, notably excluding Apple and Google from his top five.

Despite not yet owning Bitcoin, Laffont projects its market cap could more than double to over $5 trillion by 2030, putting it in the same league as tech giants.

As reported, Shunyet Jan, Head of Derivatives at Bybit, has projected that Bitcoin could reach $125,000 by the end of Q2 if current trends persist.

Likewise, crypto analyst Scott Melker has said he believes Bitcoin could surge to $250,000 by the end of 2025, driven by institutional demand and a maturing market structure.