BlackRock, the world's largest asset manager, is establishing a significant position in the crypto industry, especially in the Bitcoin ecosystem.
With $10 trillion under management, BlackRock is the largest asset management company in the world, and while it had not previously openly vocalized its interest in cryptocurrencies, today it has also become a substantial piece in driving the development of the crypto world.
The financial giant is working to make Bitcoin more accessible to institutional investors, leading applications to the Securities and Exchange Commission (SEC) this year to launch a Bitcoin spot exchange-traded fund, or ETF, in the United States that would allow direct investment in the most capitalized cryptocurrency on the market.
For now, uncertainty remains over what decision the SEC may make on these Bitcoin spot ETF applications. However, BlackRock investors already have indirect exposure to the cryptocurrency.
According to CNN Business data, BlackRock has invested $410 million in shares of public companies engaged in Bitcoin mining, including Marathon Digital Holdings, Riot Platforms, Cipher Mining and TeraWulf.
BlackRock had first disclosed these investments in crypto mining companies in a filing submitted to the SEC in 2021. According to Forbes, the company revealed at the time that its investments in Bitcoin mining companies, specifically Marathon Digital and Riot Platforms, totaled $ 382,9 million dollars.
The 2nd largest shareholder of Bitcoin mining companies
BlackRock's investment in Bitcoin mining stocks has made it the second-largest investor in the field.
Its involvement in crypto mining began with the acquisition of a stake in Riot Platforms, formerly known as Riot Blockchain. Since then, BlackRock has increased its exposure to the Bitcoin mining sector, investing in the largest miners of the cryptocurrency.
Data from Companies Market Cap platform reveals that Marathon Digital Holdings, Riot Platforms, Cipher Mining and TeraWulf are among the top 10 most capitalized Bitcoin mining companies in the market, with Marathon Digital and Riot Platforms being the largest, with $2.340 billion and $2.210 billion in market capitalization, respectively.
Source: CompaniesMarketCap
Like other companies such as Fidelity Group, BlackRock is seeing Bitcoin mining as an opportunity to diversify its investments and take advantage of the growth of the crypto market.
Recognizing Bitcoin's Innovation
But BlackRock’s involvement in the Bitcoin and cryptocurrency ecosystem is not limited to its investment in crypto mining or the pursuit of a Bitcoin spot ETF in the United States. In addition to all this, the financial giant also offers its investors the possibility of accessing Bitcoin through a private trust.
Last year, BlackRock announced the launch of BlackRock Bitcoin Private Trust, a private fund aimed at institutional clients who want to invest directly in Bitcoin.
Another of BlackRock’s efforts to increase investor exposure to Bitcoin is reflected in Aladdin, an investment management and trading platform designed by BlackRock for its institutional investors. Through this platform, the asset manager also offers access to the Bitcoin market.
In recent years, BlackRock has shown an open attitude towards Bitcoin and cryptocurrencies. Even its CEO, Larry Fink, has changed his views on the crypto world, acknowledging the interesting developments taking place in the cryptocurrency industry and the importance that Bitcoin is gaining in global markets.
Continue reading: Larry Fink, CEO of BlackRock: “Bitcoin can evolve into a global market”
