BlackRock Faces Challenges in Bitcoin Mining and ETF Aspirations Amid Growing Regulatory Concerns
In Brief
BlackRock commands substantial investments in four of the five leading publicly listed Bitcoin mining companies, also holding prominent positions among other major investors.
BlackRock actively invests in Riot Blockchain, Marathon Digital Holdings, Cipher Mining, and TeraWulf, positioning itself as the second-largest shareholder in each of these firms.
Multinational investment firm BlackRock The firm is currently under scrutiny because of its notable engagement in the Bitcoin mining area and its ambition to secure SEC approval for a Bitcoin-focused ETF.
The financial giant, which has With approximately $7.4 trillion in assets managed, BlackRock retains considerable stakes in four of the five largest publicly traded Bitcoin mining companies and is a significant player among other key shareholders.
Riot Blockchain , Marathon Digital Holdings , Cipher Mining , Hut 8 Mining , and TeraWulf These mining companies, all headquartered in North America, lead the Bitcoin sector, boasting a combined market value of almost $5.5 billion.
BlackRock's investment in all four major US Bitcoin miners places it as the second-largest shareholder in each, with ownership interests in Marathon Digital Holdings and Riot Blockchain surpassing 6%.
In June, BlackRock, alongside several major US banks, began ramping up its activities in digital assets. It reportedly acquired more than $200 million worth of Bitcoin and other cryptocurrencies, with rumors swirling about launching a crypto ETF. uk As the largest asset management firm globally, BlackRock's involvement in Bitcoin mining is particularly significant. The firm is at the forefront of seeking approval from the SEC to launch the first BTC ETF that is directly backed within the United States. This interest in Bitcoin mining aligns with its broader focus on traditional finance and ETFs.
Earlier this month, BlackRock and index provider MSCI found themselves under fire over concerns related to investments linked to China. The US congressional committee has initiated investigations into these firms for allegedly making investments in several Chinese entities that are under scrutiny.
With the SEC currently investigating BlackRock, there remains uncertainty surrounding the potential success of its crypto ETF initiative.
BlackRock Under SEC Scrutiny: Is the ETF Gambit Facing Threats?
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News Report August 28, 2023 Valeria contributes as a reporter for Metaverse Post, concentrating on fundraising, AI developments, the metaverse, digital fashion, NFTs, and all things related to web3.