The State of Michigan Retirement System (SMRS) has significantly increased its exposure to Bitcoin, reporting ownership of 300,000 shares in the ARK Bitcoin ETF (ARKB) as of June 30. At current prices, the investment is valued at approximately $11.3 million.

This move marks a substantial rise from the previous quarter, when the pension fund held 110,000 shares. The updated figures were disclosed in a 13F filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

With Bitcoin trading around $114,000 and ARKB priced at $37.79 per share, the fund’s stake remains modest relative to its total assets — just 0.03% of SMRS’s $79 billion in assets under management.

Public pension funds are generally conservative in their investment strategies, often steering clear of volatile assets like cryptocurrencies. Michigan’s decision to more than double its ARKB holdings suggests a measured, but growing interest in Bitcoin as a long-term asset class.

In addition to its Bitcoin position, SMRS continues to hold 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at roughly $9.6 million as of the end of June.

While still a small fraction of the total portfolio, these crypto-related positions indicate a cautious but noteworthy shift toward digital assets within traditional institutional investment circles.