The Michigan State Retirement System has tripled its investment in the ARK 21Shares Bitcoin ETF (ARKB), according to a recent filing with the U.S. Securities and Exchange Commission (SEC) dated August 5.

As of June 30, the fund held 300,000 shares of ARKB, up from 100,000 shares on March 31. This increased the market value of its Bitcoin ETF holdings from approximately $4.1 million to $10.7 million—a significant step signaling growing institutional confidence in digital assets.

Pension Funds Warming to Crypto for Diversification

?? MICHIGAN PENSION FUND BOUGHT $10.7 MILLION WORTH OF #BITCOIN ETF

THIS IS JUST THE BEGINNING ? pic.twitter.com/i7TEI4qeKS

— The Bitcoin Conference (@TheBitcoinConf) August 6, 2025

The move follows a broader trend of public pension funds diversifying into cryptocurrency as part of long-term investment strategies. Notably, Wisconsin’s pension fund recently disclosed a $321 million allocation to Bitcoin products from BlackRock and Grayscale.

ARKB is one of 11 spot Bitcoin ETFs approved by the SEC in January 2024, offering institutions regulated exposure to Bitcoin without the complexities of direct custody.

Rumors of a potential presidential executive order allowing Bitcoin allocations in individual retirement accounts (IRAs) have also boosted institutional optimism toward crypto-friendly policies.

Bitcoin’s growing reputation as a hedge against economic uncertainty is another driver of this trend, particularly among risk-aware institutional investors.

Michigan Fund Also Invests in Ethereum

The Michigan State fund isn’t limiting its crypto exposure to Bitcoin. It also holds 460,000 shares of the Grayscale Ethereum Trust (ETHE), currently valued at approximately $9.6 million.

This expanded exposure coincides with legislative movement in Michigan. In May, the State Treasurer backed a bill to permit crypto investments in government-managed funds, aligning policy with market momentum.

Broader Institutional Adoption Accelerates

The total amount of Bitcoin held across U.S. spot ETFs has now surpassed 1.292 million BTC, representing a market value of approximately $146.5 billion.

Michigan’s increased allocation is further evidence that mainstream financial institutions are embracing cryptocurrencies as legitimate, regulated investment assets, signaling a shift in how public capital is deployed.