The State of Michigan Retirement System has diversified its $13.6 billion pension fund assets by investing $10 million into Grayscale's Ethereum Trust (ETHE), ultimately holding more Ethereum than Bitcoin. This acquisition was disclosed to the Securities and Exchange Commission on November 5, 2024, and accompanies an additional $1.1 million in shares from Grayscale’s Ethereum Mini Trust. This shift follows the pension fund's earlier investment in an ARK 21Shares Bitcoin ETF after the SEC approved cryptocurrency ETFs in January. ETHE provides fractional ownership of Ethereum, enabling investors to gain exposure without direct purchase. However, it has faced significant outflows since its conversion to an ETF in July 2024, with over $2 billion exiting by August due to competition from newly launched Ethereum ETFs by firms like BlackRock and Fidelity, which have lower fees compared to ETHE's 2.5%.

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