The state of Michigan (US) has increased its investment in Bitcoin spot ETFs in the last quarter, while the Cartwright pension fund (UK) has made a direct purchase of the cryptocurrency after extensive analysis.
Interest in Bitcoin continues to grow among institutional investors, evidenced by recent pension fund investments in the last quarter.
Notably, Michigan’s state pension fund has made a new $10 million investment in Bitcoin exchange-traded funds. This time, the pension fund has invested in Grayscale Investments’ spot ETF, GBTC.
On the other hand, Cartwright's pension fund has decided to directly invest around 3% of its $65 million in Bitcoin. With this purchase, which was made two weeks ago, according to the Corporate Adviser report, the fund acquired around 24,6 BTC, with an average price of $65.800 per BTC at the time of purchase.
These decisions by both pension funds mark a crucial moment in the adoption of Bitcoin as a legitimate asset within institutional investment portfolios.
Michigan State Pension Fund Investment
The state pension fund of Michigan has been expanding its exposure to Bitcoin significantly. By July this year, the fund had already invested $6,6 million in Ark Invest and 21Shares’ Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ARKB).
Now, with its recent $10 million investment in Grayscale’s spot ETF, the pension fund is demonstrating a growing commitment to the market-leading cryptocurrency. According to analysts, this move not only reflects a rise in confidence towards Bitcoin, but also indicates a shift in perception of digital assets among large pension funds.
According to Reuters, Michigan's state pension fund managed about $143,9 million in funding for state employees in the middle of this year, so The total investment this fund has made in Bitcoin ETFs represents around 11,6% of the funds it oversees..
Also, in its recent filing with the Securities and Exchange Commission (SEC), the state pension fund Michigan disclosed holdings in Grayscale's Ethereum spot ETF, with an investment of approximately $1,1 million dollars.
The Michigan fund's interest aligns with a broader trend, where multiple pension funds in the United States, such as the Jersey City and of Wisconsin, are exploring investing in the cryptocurrency as a way to diversify their assets and seek higher returns. As spot ETFs become more common, more entities are expected to follow the lead of these pension funds, thus increasing Bitcoin’s legitimacy in traditional financial markets.
Cartwright's pension fund enters the Bitcoin market
For its part, Cartwright's pension fund has made history by becoming The first UK pension fund to invest directly in BitcoinThis investment, which represents nearly 3% of its total assets, equivalent to $65 million, was the result of an exhaustive analysis that considered the potential benefits of Bitcoin, as well as environmental, social and governance (ESG) sustainability criteria.
Glenn Cameron, head of digital assets at Cartwright, said this direct investment in Bitcoin reflects A progressive vision of the trustees of the fundThe decision to invest in Bitcoin, rather than opting for an ETF, underlines the confidence in the cryptocurrency as an asset that can offer a unique asymmetric risk-return profile. With this approach, the pension fund is not only seeking diversification, but is also positioning itself as a pioneer in the adoption of digital assets in the UK.
Experts have pointed out that the growing involvement of pension funds in Bitcoin could have a significant effect on the perception of the cryptocurrency market.
As more institutions begin investing, Bitcoin's volatility is expected to decrease, given that institutional investors tend to have a longer investment horizon and a greater ability to handle market fluctuations. Additionally, institutional investment may attract other investors who have been reluctant to participate in the cryptocurrency market due to its volatile nature and lack of regulation. The legitimization of Bitcoin by pension funds could be the catalyst that drives greater acceptance of digital assets in traditional investment portfolios.
Bitcoin and ESG: the new frontier of sustainable investments
Consideration of ESG criteria in investment decisions, as has been the case with the Cartwright pension fund, is an aspect that cannot be overlooked.
As mentioned, this pension fund's investment in Bitcoin was made after a detailed analysis of the cryptocurrency's benefits, including ESG criteria, suggesting that investors are increasingly interested in how their assets impact the environment and society. This approach could influence other institutions to similarly evaluate their investment strategies, integrating sustainability criteria into their decisions.
In short, with new pension funds entering the Bitcoin market, and the increasing participation of others, the doors are opening to new opportunities for adoption and further development of the digital asset ecosystem.
