By Shelly Melancon (Switzerland)
Global asset manager, BlackRock is holding nearly $400 million in stocks in some crypto mining companies, a US SEC report has shown. Two big players in the BTC mining industry, Riot Blockchain and Marathon Digital Holding are the beneficiaries of BlackRock’s venture.
Both companies are public companies and their stocks are listed on exchanges. BlackRock presented filings before the US SEC, which indicated that its stake in Riot Blockchain amounts to 6.61% while its Marathon Digital stake is pegged at 6.71%. Altogether, BlackRock’s ventures into the two mining companies are both valued at exactly $384 million. Riot’s share in the ventures is estimated to be $176 million. Marathon, on its part, holds $207 million.
BlackRock’s ETF, The Biggest in Riot and Marathon
According to reports, BlackRock’s exchange-traded fund (ETF) has more stocks in both companies compared to other ETFs. Still, this is not BlackRock’s first foray into the crypto-related investment products. Earlier this year, it had submitted an application to the US SEC concerning two of its Trusts as it decided to buy BTC futures derivatives. Later in April, its Trust fund purchased 37 BTC futures derivatives from the CME.
Despite unwillingness on the part of the US SEC to approve a myriad of crypto ETF applications filed before it, crypto derivatives like BTC futures have afforded crypto enthusiasts the chance to profit from BTC and other cryptocurrencies. BTC mining stocks have also become an investment choice for institutional investors in the US in the past few years, given that they offer them the opportunity to invest in the cryptocurrency market without getting exposed to the risks of volatility.
Also read:In light of the latter, Vanguard Group and Fidelity Group are part of the big players providing investors exposure to the BTC mining industry, lately. Since a proper BTC ETF is lacking in the US, this would serve as an alternative.
US SEC Remains Adamant on ETF, Two Applications Withdrawn
In a related development, Tokenhell reported some hours ago that applications for an Ether Futures-based ETF were withdrawn by the companies who filed them. The two companies, namely VanEck and Prostocks had made the filings on Wednesday, only to discontinue the process later on Friday. Although no concrete reason was put forward by both companies, what industry experts have alleged is that US SEC’s reluctance to assent to an ETF must have instigated the withdrawals.
The U.S. SEC is however unbothered that the country has not brought forward any ETF. To the regulatory body, the risks involved supersede the benefits outlined by stakeholders. Canada is leading the world with respect to a BTC ETF, with three BTC ETFs already trading on the country’s stock exchange. Brazil is second-placed after Canada, with two listed BTC ETFs on the Brazilian Stock Exchange.
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