In a landmark decision, Michigan has emerged as the pioneer US state pension fund to venture into an Ethereum [ETH] ETF.
Matthew Sigel, Chief of digital property research at VanEck, expressed on X that the State of Michigan now ranks among the top five holders of both the Grayscale Ethereum Trust Fund ($ETHE) and Grayscale’s Ethereum Mini Trust ($ETH).
Michigan pension fund’s Ethereum holdings
Michigan’s pension fund recently revealed in a 13F filing with the SEC that it possessed close to 460,000 shares in the Grayscale Ethereum Trust, with a value of about $10.07 million. Additionally, the fund had 460,000 shares in the Grayscale Ethereum Mini Trust, valued at approximately $1.12 million.
Besides Ethereum, Michigan has also delved into Bitcoin [BTC]. The fund owns 110,000 shares of the ARK 21Shares Bitcoin ETF, totaling about $7 million. This strategic move showcases Michigan’s dedication to broadening its portfolio with digital assets.
The current state of Ethereum ETFs
Interestingly, the performance of ETH ETFs has been somewhat lackluster compared to BTC ETFs. Recent data from Lookonchain revealed a significant net outflow from Ethereum ETFs on the 4th of November, with a decrease of 14,206 ETH valued at over $34 million.
Particularly, Grayscale’s ETHE fund experienced outflows of 14,673 ETH, equivalent to over $35 million. Nevertheless, the fund still held a substantial 1,576,248 ETH, approximately $3.84 billion, at the time of reporting.
Furthermore, insights from Fraside Investors pointed out a total cumulative net outflow surpassing $500 million, indicating a broader sense of caution towards Ethereum ETFs despite notable acquisitions like Michigan’s.
Industry experts and executives didn’t overlook Michigan’s recent move; they offered their perspectives. Eric Balchunas, Bloomberg’s senior ETF analyst, drew attention to Michigan’s significant investment in Ether ETFs over Bitcoin ETFs, mentioning,
“Despite btc being up a ton and ether in the gutter. Pretty big win for ether which could use one.”
Ryan Sean Adams, co-founder of Bankless and a fervent ETH advocate, also acknowledged the development and stated:
His comments highlighted the increasing acceptance of Ethereum among institutional investors, challenging doubts.
ETH Price Performance
Meanwhile, ETH’s price performance has been less than impressive lately. The price encountered a sharp decline following rejection at the $2,662 resistance level, stabilizing at the $2,386 support on the daily chart.
Currently, the altcoin is trading at $2,425, indicating a decline of over 7% in the past week. Even the yearly appreciation has been moderate, with ETH witnessing a rise of around 30%.
Technical indicators supported the bearish sentiment, with the RSI at 42.33. The dominance of the 100-day EMA (yellow) over the 50-day EMA (blue) and the price reinforced the overall downtrend.
For Ethereum enthusiasts, flipping the $2,662 resistance is crucial to counter the prevailing bearish trend. However, if the downtrend persists, a drop to $2,273 wouldn’t come as a surprise.
As state pension funds and other major investors delve into cryptocurrency prospects, the Ethereum ETF landscape may experience transformations, potentially promoting increased adoption and stability in the sector.