NAIROBI (CoinChapter.com)—The Michigan State Pension Fund has expanded its crypto holdings by acquiring $10 million in Grayscale’s Ethereum Trust (ETHE) shares. This move makes Michigan the first U.S. state pension fund to invest in Ethereum ETFs, signaling a cautious but rising institutional interest in Ethereum despite recent regulatory and market pressures.
Michigan Fund Shows Confidence in Ethereum Over Bitcoin
The Michigan State Pension Fund, overseeing $13.6 billion in assets, disclosed the Ethereum purchase in a recent 13-F filing with the SEC. The fund’s Ethereum holdings now exceed its Bitcoin investments, marking a shift in preference. Earlier this year, Michigan added $6.6 million in ARK 21Shares Bitcoin ETF shares to its portfolio, following SEC approval.
State of Michigan Treasury holds 460,000 shares in Grayscale Ethereum Trust. Source: X
This Ethereum purchase builds on Michigan’s earlier crypto investments. In July, the fund bought $6.6 million worth of shares in the ARK 21Shares Bitcoin ETF. Despite Bitcoin’s regulatory approval back in Jan. 2024, Michigan’s Ethereum holdings have now outpaced its Bitcoin allocation. This shift points to Ethereum’s growing appeal, as more institutions choose Ethereum amid fierce competition from new spot-based ETFs launched by firms like BlackRock and Fidelity.
Analyst Sees Potential Bottom in ETH/BTC Chart
Analyst CryptoBullet recently highlighted that the ETH/BTC chart may be forming a bottom, resembling a pattern seen in late 2016. At that time, Ethereum (ETH) rallied 2,738% over the following months.
ETH/BTC shows potential 2024 bottom mirroring 2016 pattern. Credit: CryptoBullet/X
Although expecting a 2,738% surge in today’s market may be unrealistic, even a fraction of such a rally could yield notable returns. If Ethereum’s ETH/BTC pair confirms a bottom, it may attract investor interest, particularly as ETH shows resilience amid macro uncertainty.
Ethereum (ETH) eyes breakout beyond last cycle’s all-time high. Source: 360Trader/X
Market veteran 360Trader weighed in on Ethereum’s outlook, dismissing recent criticism of the asset. “$ETH will lead once again soon… nothing is happening that hasn’t already happened before,” he stated, urging patience as Ethereum navigates its market cycle.
Ethereum Whale Buys $137M in ETH as Holder Count Soars
According to EmberCN, a notable whale accumulated 19,772 ETH worth about $49.62 million in the past three days. Since September 17, the whale has withdrawn 54,272 ETH worth about $137 million from Bybit and Binance.
ETH Mean Coin Age. Source: Santiment
Meanwhile, Ethereum’s total number of holders has also picked up pace in the past two months, increasing by 3.64 million to 130.52 million — 40% higher between September and October than in July and August. This shows growing investors’ appetite for Ethereum (ETH).
Michigan’s substantial investment, combined with favorable technical patterns, signals a possible bullish phase for Ethereum (ETH).
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