BlackRock ETF Invests $384M In Bitcoin Mining

BlackRock is a $9 trillion multinational investment management firm. It appears from the filing submissions that the company has heavily invested in two of the largest publicly traded bitcoin (BTC) mining companies. Forbes discovered that on June 30, the firm submitted a filing to the United States Securities and Exchange Commission.

Flags fly on the front of BlackRock headquarters, Wednesday, Jan. 13, 2021, in New York. Source – Forbes

It revealed that BlackRock owns 6.71% of Marathon Digital Holdings and 6.61% of the popular mining firm Riot Blockchain.  The investment totaled nearly $ 384 million. Out of this huge amount, BlackRock acquired $207 million worth of Marathon Digital Holdings stock. And, it acquired $176 million worth of Riot Blockchain stock. Now, according to a report from ETF.com, BlackRock’s iShares Russell 2000 ETF holds considerably more stocks in Marathon Digital and Riot blockchain as compared to any other exchange-traded fund. On the other hand, iShares Russell 2000 Value ETF at present is in third place on the same measure.

Not The First Investment By BlackRock!

However, BlackRock’s investment is not the first in the digital asset space. The company also filed an application with the Securities and Exchange Commission in January this year. It was for two of its funds to buy cash-settled Bitcoin futures contracts. They did this before disclosing to the public in April that its BlackRock Global Allocation Fund had acquired 37 BTC futures contracts. They acquired it on the Chicago Mercantile Exchange.

Several products are offering institutional investors entry into the United States cryptocurrency market. But, investing in Bitcoin mining stocks has become quite famous in the past few years. In the last year, BTC is up about 288%, Marathon is up by 754% and Riot has gained 848%. Fidelity Group and Vanguard Group are some of the largest companies that have significantly obtained experience in the BTC mining sector in the last few months. Furthermore, according to ETF.com, Vanguard’s Total Stock Market ETF and IT ETF currently rank as the fourth- and fifth-largest funds by RIOT holdings. BlackRock’s Small-Cap ETF and Small-Cap Growth ETF are now the fourth- and fifth-largest ETF holders of MARA shares.