Michigan Pension Fund Invests Millions in Ethereum ETF
Michigan’s First State Pension Fund just made a big move
The state’s pension fund has decided to invest in something called an Ether ETF (Exchange-Traded Fund).
In simple terms, an ETF lets people invest in assets, like stocks or cryptocurrency, without having to buy them directly. This way, they can be part of the action without handling the cryptocurrency themselves. Let’s discover more about this Ethereum ETF.
What is an Ether ETF?
An Ether ETF is a way for investors to buy a part of Ethereum without actually owning any Ethereum. These ETFs are becoming more popular, and Michigan’s pension fund is one of the latest to jump on the bandwagon.
What’s interesting is that Michigan’s pension fund didn’t just buy a little bit of Ether ETFs. They bought a whole lot. In fact, they invested more in Ether ETFs than in Bitcoin ETFs. According to their records, they spent about $10 million on Ether ETFs and only $7 million on Bitcoin ETFs.
Not only did Michigan’s pension buy Ether ETFs but they bought more then they did of bitcoin ETFs, $10m vs $7m, this despite btc being up a ton and ether in the gutter. Pretty big win for ether which could use one. https://t.co/0E6O6pKK8S
— Eric Balchunas (@EricBalchunas) November 4, 2024
Now, this decision might surprise some people because Bitcoin has been doing well in the market lately, while Ethereum’s price has been struggling. But Michigan’s pension fund seems to believe that Ethereum has a bright future ahead, even if it’s having a rough time right now.
So, why take a bigger chance on Ether? Some experts think it’s because Ethereum is more than just a currency. It’s like the engine behind a lot of new technologies, especially in a field called DeFi. DeFi lets people borrow, lend, and trade without needing banks. Ethereum’s technology supports these kinds of transactions, making it a “powerhouse” in the digital world.
More About Ethereum ETF
On November 4, Ethereum ETFs saw a net outflow of 25,720 ETH, which equals a loss of around $63.2 million. While there were some new investments, with ETHA BlackRock gaining 4,480 ETH in inflows, the biggest seller was Grayscale, which sold off 12,980 ETH.
Total #Ethereum ETF flows on November 4:
-25,720 ETH (-$63.20 million)Inflows: ETHA BlackRock +4,480 ETH
Biggest seller: ETH Grayscale -12,980 #ETH🔵 Total combined since the ETF’s inception:
-171.79k $ETH (-$542.1 million) pic.twitter.com/ARORpNbaL6— Crypto Dives (@MakroDives) November 5, 2024
Since the launch of Ethereum ETFs, the overall flow has been negative, with a total of 171,790 ETH (about $542.1 million) leaving these funds. This trend suggests some investors might be cautious about Ethereum’s current market performance, despite interest from major players like BlackRock.
Disclaimer
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