Michigan Retirement Systems (MRS) is adding 110,000 shares of Ark Invest’s ARKB Bitcoin Spot ETF to its pension fund, representing a $6.6 million investment. The move is part of a growing trend of Bitcoin adoption by pension funds in the United States.
Bitcoin in Michigan Pensions
When we think of mass adoption of Bitcoin, we immediately think of the possibility of using it everywhere to buy goods and services in the same way we use our fiat currencies. However, this is not the only possible scenario, Bitcoin could be adopted in many different ways.
In January 2024, the Securities and Exchange Commission (SEC) approved the first Bitcoin spot ETFs in the United States. Within a few months, These new financial products have accumulated nearly 350 billion in transaction volumes and 17.7 billion dollars in net inflows.
Further Reading – Spot Bitcoin ETFs Explained: Everything You Need to Know
Although ETFs are often seen as products for speculation and profit, they allow financial institutions to build baskets of assets and offer them to clients looking for a place to preserve their money, particularly in the United States, where people must manage their retirement individually.
Bitcoin spot ETFs thus allow BTC to interfere in the whole of US financemaking it almost as common as a traditional asset.
Recently, Michigan Retirement Systems (MRS) has decided to integrate 110,000 shares of ARKB, Ark Invest's Bitcoin spot ETF, worth $6.6 million, into its pension fund.
The MRS is a group of public pension funds administered by the State of Michigan for state employees, such as teachers, municipal employees, police officers and firefighters.
So, The State of Michigan is following the movement initiated by the State of Wisconsin, which had integrated 2% of its pension fund into IBITBlackRock's Bitcoin spot ETF, or nearly $100 million by May 2024, and the city of Jersey, which made the same choice shortly before the state of Michigan.
Trade Republic: The Easiest Way to Buy Cryptocurrencies
How is the Bitcoin spot ETF market evolving in the United States?
Thus, Ark Invest strengthens its position as an influential manager in the cryptocurrency sector. Its ARKB now ranks 4th among spot Bitcoin ETFs in the United States, totaling nearly 50,000 BTC today.or more than $3.3 billion.
Evolution of the number of Bitcoins under management of Bitcoin spot ETFs
In third place is Fidelity’s FBTC. Thanks to its very low fees of 0.25% and the fact that the company itself keeps its Bitcoins, Fidelity has managed to establish itself and amass nearly 200,000 BTC, worth $13.3 billion.
Also read in the news – Ethereum spot ETF: A mixed week for their launch in the United States
GBTC, meanwhile, appears to have stopped bleeding and is stabilizing in 2nd place in the ranking, managing nearly 270,000 Bitcoins, or $18 billion, after losing 340,000 BTC under management.
Finally, BlackRock's IBIT took the lead in this ranking, totaling more than 330,000 BTC, worth $22 billion.
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Sources: SEC, The Block
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I have no choice but to share my knowledge and transmit the passion I have for the blockchain universe. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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