Vanguard Group, Inc. is one of the world's largest investment firms with $7.7 trillion in assets under management (AUM). The financial giant shocked the market by refusing to offer the recently approved Bitcoin ETFs to its broker's clients.
On January 11, Vanguard prevented its customers from investing in Bitcoin (BTC) through the now legally approved ETFs. As The Block reported, a company spokesperson explained that crypto-related products do not align with its investment vision.
“We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products – we have long believed that the high volatility of cryptocurrencies runs counter to our goal of helping investors achieve positive real returns over the long term.”
– Vanguard's spokesperson told The Block
However, Finbold obtained public data on CNN Business from the top Bitcoin mining companies in the United States, most of which The Vanguard Group, Inc. is a major shareholder. Interestingly, the profitability of the mining sector depends heavily on the price development of Bitcoin and therefore volatility.
Vanguard is a major shareholder in Bitcoin mining companies
First, Vanguard is the largest owner of Marathon Digital (NASDAQ: MARA), with 8.11% of all shares valued at $216.10 million. The self-proclaimed anti-Bitcoin investment firm recently purchased nearly 1 million shares of the largest Bitcoin mining company.
Top 10 Owners of Marathon Digital Holdings Inc (NASDAQ: MARA). Source: CNN Business
Second, Vanguard has a massive stake in Riot Platforms Inc. (NASDAQ: RIOT) with 9.12% of all shares worth $236.45 million. Notably, Vanguard is followed by BlackRock Inc. (NYSE: BLK) as the second largest shareholder with just over 5% of the shares. The same scenario exists in the ownership of MARA.
Top 10 Owners of Riot Platforms Inc (NASDAQ: RIOT). Source: CNN Business
Something similar is happening in this context for the other leading US Bitcoin mining companies. Vanguard is a top shareholder in CleanSpark (NASDAQ: CLSK), Cipher Mining (NASDAQ: CIFR) and TeraWulf (NASDAQ: WULF).
After Vanguard publicly expressed its opposing views on Bitcoin and cryptocurrencies, it put itself in a controversial position. Some well-known cryptocurrency investors reported that they were closing their Vanguard retirement accounts in a boycott of sorts.
Now investors are waiting for Vanguard's next public report to see if there has been any change in the positions of its Bitcoin mining companies.
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