• Michigan pension fund reveals substantial Ethereum ETF investment.
• ETH continues to struggle under a bearish stronghold. 

In a groundbreaking move, Michigan has become the first US state pension fund to invest in an Ethereum [ETH] ETF.

Matthew Sigel, Head of digital assets research at VanEck took to X and shared that the State of Michigan is now among the top five holders of both Grayscale Ethereum Trust Fund ($ETHE) and Grayscale’s Ethereum Mini Trust ($ETH).

According to a recent 13F filing with the SEC, Michigan’s pension fund disclosed that it held approximately 460,000 shares in the Grayscale Ethereum Trust, valued at around $10.07 million. Additionally, the fund owned 460,000 shares in the Grayscale Ethereum Mini Trust, worth roughly $1.12 million. 

Beyond Ethereum, Michigan has also invested in Bitcoin [BTC]. The fund holds 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at approximately $7 million.This strategic investment underscores Michigan’s commitment to diversifying its portfolio with digital assets.

The current landscape of Ethereum ETFs

Notably, ETH ETFs’ performance has been quite underwhelming compared to BTC ETFs. In fact, the latest data from Lookonchain revealed a substantial net outflow from Ethereum ETFs on the 4th of November, with a reduction of 14,206 ETH worth over $34 million.

Specifically, Grayscale’s ETHE fund recorded outflows of 14,673 ETH, amounting to over $35 million. Nonetheless, at press time, the fund still held a considerable 1,576,248 ETH, worth roughly $3.84 billion.

Furthermore, insights from Fraside Investors indicated a total cumulative net outflow of over $500 million, suggesting broader caution around Ethereum ETFs despite significant purchases by entities such as Michigan.

Michigan’s latest move didn’t go unnoticed by industry experts and executives who shared their insights. Eric Balchunas, Bloomberg’s senior ETF analyst, highlighted Michigan’s substantial investment in Ether ETFs compared to Bitcoin ETFs, noting,

“This 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 vocal ETH supporter also took note of the development and stated:

His remarks emphasized the growing acceptance of Ethereum among institutional investors, challenging skepticism.

ETH’s price performance

Meanwhile, ETH’s price performance has been less than stellar recently. On the daily chart, the price experienced a steep decline following a rejection at the $2,662 resistance level, stabilizing at the $2,386 support. 

At press time, the altcoin traded at $2,425, reflecting a decline of over 7% over the past week. Even the yearly appreciation has been modest, with ETH rising by approximately 30%.

Technical indicators corroborated 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 broader downtrend.

For Ethereum bulls, a flip of the $2,662 resistance is necessary to counter the bearish stronghold. Nonetheless, if the decline continues, a drop to $2,273 wouldn’t be surprising.

Read Ethereum’s [ETH] Price Prediction 2024–2025

As state pension funds and other large investors continue to explore cryptocurrency opportunities, the landscape for Ethereum ETFs may evolve, potentially driving greater adoption and stability in the sector.