Ethereum

Millions

Bitcoin

Edge

<ul class="wp-block-list">
 <li>Michigan’s Pension Fund’s $10M in ETH and $7M in BTC highlight the rising focus on crypto assets with strong monetary value.</li>  
 <li>Ethereum’s rollup model strengthens its value by stabilizing its base layer and enabling flexible, efficient Layer 2 growth.</li>  
 <li>Growing institutional interest in ETH and BTC shows demand for stable, value-rich crypto amid economic uncertainty.</li> 
</ul>  
<p>Michigan’s Pension Fund invested $10 million in Ethereum (ETH) and $7 million in Bitcoin (BTC). Notably, the fund allocated more to ETH, underscoring a shifting focus toward assets with strong monetary premium attributes.&nbsp;</p>  
<p>Monetary premium, or the value derived from an asset's money-like qualities, is a critical factor here. Both BTC and ETH are uniquely designed to support this premium by scaling execution on <a href="https://www.gemini.com/cryptopedia/blockchain-layer-2-network-layer-1-network" target="_blank" rel="noopener noreferrer nofollow">Layer 2 networks</a> (L2s), which enhances their long-term valuation prospects.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/AdrianoFeria/status/1853815704232792203
 </div>
</figure>  
<h2 class="wp-block-heading" id="h-eth-s-competitive-edge-through-l2-adoption">ETH’s Competitive Edge Through L2 Adoption</h2>  
<p>Ethereum’s rollup-centric model has led to a robust L2 ecosystem that supports ETH’s value. This model enables Ethereum's base layer (L1) to remain stable and resistant to changes, which enhances its monetary layer.&nbsp;</p>  
<p><a href="https://cryptonewsland.com/ethereums-dencun-upgrade-set-to-revolutionize-ecosystem-altcoins-on-the-rise/" target="_blank" rel="noopener noreferrer nofollow">Ethereum's L2s allow multiple frameworks</a> to compete and evolve, fostering flexibility without compromising ETH’s settlement layer. Although ETH shares execution revenue with L2s, the strengthened monetary premium far outweighs the cost, positioning Ethereum advantageously.</p>  
<p>Additionally, ETH's deflationary nature, thanks to the merge upgrade, and native yield generation are major draws for investors. Unlike Bitcoin, Ethereum doesn’t rely on issuance subsidies.&nbsp;</p>  
<p>The network also consumes less energy, addressing environmental concerns. These aspects, alongside Ethereum’s established L2 ecosystem, are compelling reasons behind Michigan’s preference for ETH over BTC.</p>  
<h2 class="wp-block-heading" id="h-broader-institutional-trends-favoring-bitcoin-and-ethereum">Broader Institutional Trends Favoring Bitcoin and Ethereum</h2>  
<p>Beyond Michigan’s move, several firms are actively <a href="https://cryptonewsland.com/surge-in-usdt-holdings-on-cryptocurrency-exchanges-signals-potential-market-activity/" target="_blank" rel="noopener noreferrer nofollow">increasing their cryptocurrency holdings</a>. For instance, Semler Scientific, a healthcare tech company, recently acquired 47 BTC for $3 million, boosting its total holdings to 1,058 BTC.&nbsp;</p>  
<p>This investment aligns with Semler’s strategy to hedge against inflation and macroeconomic instability. Similarly, Japanese firm Metaplanet has been accumulating Bitcoin, raising 10 billion yen through a recent stock offering to bolster its BTC reserves.</p>  
<p><a href="https://www.irmagazine.com/shareholder-targeting-id/institutional-investors-boost-crypto-holdings-finds-survey" target="_blank" rel="noopener noreferrer nofollow">Institutional interest</a> in Bitcoin and Ethereum highlights a preference for assets with monetary premium potential. Unlike highly competitive execution-focused chains like Solana, ETH and BTC stand out for their intrinsic monetary properties. This shift suggests a growing recognition of crypto assets as stable, valuable reserves in uncertain economic climates.</p> 
<p>The post <a href="https://cryptonewsland.com/michigans-pension-fund-allocates-millions-to-eth-and-btc-amid-growing-institutional-interest/" rel="noopener noreferrer nofollow">Michigan’s Pension Fund Allocates Millions to ETH and BTC Amid Growing Institutional Interest</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Michigan’s Pension Fund Allocates Millions to ETH and BTC Amid Growing Institutional Interest

Table of Contents

Crypto News Land

Other articles published on Nov 6, 2024

Crypto Passive Income: 4 Ways To Earn More

Winklevoss Warns Harris Win Could Push Crypto Legal Costs Over $1 Billion

Ripple’s Garlinghouse suggests issues President Trump should address in his first 100 days in office

SHIB Lead Developer Presents Ambitious S.H.I.B. Proposal for U.S. Government

JPMorgan to launch dollar-euro FX settlements via Kinexys blockchain

Here’s When the Ripple (XRP) Price Can Say ‘Goodbye’ to $1 for Good (Analyst)

Join our free newsletter for daily crypto updates!