First State Pension Fund Buys Ethereum (ETH) ETF

As a seasoned researcher with over two decades of experience under my belt, I find the recent investment by the State of Michigan Retirement System into Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust (ETH) intriguing. Having witnessed the rise and fall of various markets, I must admit that this move seems to be a calculated risk rather than a leap in the dark.


As an analyst, I’ve recently uncovered that I, myself, have acquired approximately 460,000 shares of the Grayscale Ethereum Trust (ETHE), amounting to around $10 million, based on the latest disclosures in regulatory filings.

This comes after it bought $6.6 million worth of shares of the ARK 21Shares Bitcoin in late July. 

Apart from acquiring ETHE shares, the pension fund additionally bought 460,000 shares of Grayscale Ethereum Trust Mini (ETH), a cost-effective offshoot of its primary fund. The sum of these Ethereum ETFs now totals approximately $11.2 million in value.

Significantly, it’s worth mentioning that the Michigan State Retirement System was the pioneer among state pension funds by investing in Exchange-Traded Funds (ETFs) tied to Ethereum.

A “pretty big win” for Ether 

As an analyst, I’m sharing insights based on Eric Balchunas, Bloomberg’s leading ETF authority’s comments. He sees the latest pension fund’s crypto investment in Ethereum (ETH) as a significant victory, referring to it as a “pretty big win” for Ethereum.

The analyst has observed an interesting trend: the pension fund has invested a greater amount in Ether than Bitcoin, even though Ether is currently struggling.

Initially celebrated Ethereum ETFs, launched in July, turned out to be a significant disappointment. The combined withdrawals from these ETFs have reached nearly half a billion dollars. On the other hand, Bitcoin ETFs have experienced tremendous success, accumulating over $24 billion in total investments.

According to a report from U.Today, Robert Mitchnick, who leads digital assets at BlackRock, expressed his viewpoint that some prospective investors might find it perplexing when it comes to understanding Ethereum’s investment rationale.

In a recent social media update, ETF analyst Nate Geraci underscored the idea that Ethereum, as an investment, can be more intricate for individuals, hence stressing the importance of providing financial advisors with additional knowledge and understanding.

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2024-11-04 20:04