BlackRock Navigates Bitcoin Mining and ETF Goals Amid Rising Regulatory Scrutiny
BlackRock holds substantial stakes in four of the five largest publicly traded Bitcoin mining firms and holds significant positions among other prominent shareholders.
BlackRock holds significant investments in Riot Blockchain, Marathon Digital Holdings, Cipher Mining, and TeraWulf, and is the second-largest shareholder in each of them.
Multinational investment firm BlackRock is under the spotlight again, due to the company’s notable involvement in the Bitcoin mining sector and its pursuit of SEC approval for a Bitcoin-oriented ETF.
The financial giant, which has $7.4 trillion in assets under management, holds substantial stakes in four of the five largest publicly traded Bitcoin mining firms and holds significant positions among other prominent shareholders.
Riot Blockchain, Marathon Digital Holdings, Cipher Mining, Hut 8 Mining, and TeraWulf are the largest Bitcoin miners, all based in North America. Together, these companies have a combined market capitalization of nearly $5.5 billion.
BlackRock holds significant investments in all four US Bitcoin mining companies and is the second-largest shareholder in each of them. More than that, its ownership share in Marathon Digital Holdings and Riot Blockchain exceeds 6%.
In June, BlackRock and several United States banks started actively accumulating digital assets. BlackRock, which had bought over $200 million worth of Bitcoin and other cryptocurrencies, was rumored to launch a crypto exchange-traded fund (ETF).
The company’s engagement in Bitcoin mining carries weight, particularly as the world’s largest asset manager. It stands at the forefront for Securities and Exchange Commission approval, aiming to introduce the initial directly collateralized BTC ETF within the US market. Hence, the firm’s intrigue in Bitcoin mining emerges amid its emphasis on conventional financial services and ETFs.
Earlier this month, BlackRock and index provider MSCI faced scrutiny regarding China-related concerns. The United States congressional committee initiated investigations into the companies due to their alleged facilitation of investments in several Chinese entities on the blacklist.
Amid the Securities and Exchange Commission’s inquiry into BlackRock, the certainty of the crypto ETF initiative’s viability remains uncertain.
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