The Michigan State Retirement System has significantly expanded its bitcoin exposure, tripling its holdings in the ARK 21Shares Bitcoin ETF (ARKB) to 300,000 shares in the second quarter of 2025.
This stake is now valued at $11.4 million, according to the fund’s latest disclosure.
Michigan joins other states
With this move, Michigan aligns itself with a growing number of U.S. state pension funds turning to bitcoin-linked assets.
The State of Wisconsin Investment Board, for example, now holds over 6 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at approximately $387.3 million.
As of March 31, Michigan’s $19.3 billion fund also maintained a $13.6 million position in the Grayscale Ethereum Trust, a holding it has kept since September 2024.
ETF outflows continue despite growing institutional interest
Despite the rise in institutional allocations, U.S. spot bitcoin ETFs have experienced four consecutive days of net outflows, totaling $1.4 billion.
On August 5 alone, spot bitcoin ETFs saw $196 million in net outflows, led by Fidelity’s FBTC and BlackRock’s IBIT.
However, cumulative inflows for U.S. bitcoin ETFs remain strong at $53.65 billion, and these funds now hold about 6.46% of all bitcoin in existence.
Outlook driven by institutional flows
Standard Chartered Bank has forecast that pension funds could help propel bitcoin’s price to $200,000 by the end of 2025.
The bank stated:
“We expect institutional flows into Bitcoin in 2025 to exceed 2024 levels.”
Other prominent investors, such as Coatue Management’s Philippe Laffont, have also added bitcoin to their list of top investment opportunities for the coming years, signaling growing confidence in the asset among major funds.
ARKB records limited outflows
While several major bitcoin ETFs posted outflows over the recent period, ARKB—Michigan’s ETF of choice—saw only one day of withdrawals, with $5.1 million exiting on Friday.
This suggests relative resilience compared to other ETFs during the current market volatility.
