Michigan Pension Fund Goes Big on Bitcoin ETFs – Triples Down Amid Market Frenzy

Wall Street's institutional herd just got another stampede leader. Michigan's state pension fund is loading up on Bitcoin ETFs like there's no tomorrow—tripling its exposure in a single move.

Who needs subtlety when you've got FOMO?

The pension fund's aggressive pivot mirrors a broader trend: traditional finance players diving headfirst into crypto waters. No more dipping toes—this is a cannonball splash.

Meanwhile, Wall Street analysts scramble to justify how 'digital gold' fits into retirement portfolios. Spoiler: they'll mint new jargon by lunchtime.

One thing's clear: when pension funds start betting the farm, the 'risky asset' narrative starts looking... well, risky to ignore.

*Cue the obligatory eye-roll at finance bros discovering inflation hedges a decade late.*

Michigan joins other states

With this move, Michigan aligns itself with a growing number of U.S. state pension funds turning to bitcoin-linked assets.

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

As of March 31, Michigan’s $19.3 billion fund also maintained a $13.6 million position in the Grayscale ethereum Trust, a holding it has kept since September 2024.

ETF outflows continue despite growing institutional interest

Despite the rise in institutional allocations, U.S. spot bitcoin ETFs have experienced four consecutive days of net outflows, totaling $1.4 billion.

On August 5 alone, spot bitcoin ETFs saw $196 million in net outflows, led by Fidelity’s FBTC and BlackRock’s IBIT.

However, cumulative inflows for U.S. bitcoin ETFs remain strong at $53.65 billion, and these funds now hold about 6.46% of all bitcoin in existence.

Outlook driven by institutional flows

Standard Chartered Bank has forecast that pension funds could help propel bitcoin’s price to $200,000 by the end of 2025.

The bank stated:

“We expect institutional flows into Bitcoin in 2025 to exceed 2024 levels.”

Other prominent investors, such as Coatue Management’s Philippe Laffont, have also added bitcoin to their list of top investment opportunities for the coming years, signaling growing confidence in the asset among major funds.

ARKB records limited outflows

While several major bitcoin ETFs posted outflows over the recent period, ARKB—Michigan’s ETF of choice—saw only one day of withdrawals, with $5.1 million exiting on Friday.

This suggests relative resilience compared to other ETFs during the current market volatility.