Charles Schwab, Fidelity and Vanguard are increasing investments in companies from the blockchain industry.
The company’s three largest asset managers: Charles Schwab, Fidelity and Vanguard, diversify their assets and buy shares of companies in the blockchain industry.
Banking and brokerage group Charles Schwab began buying shares in Riot Blockchain. Previously, Fidelity and Vanguard also invested in Riot and other blockchain-related companies: HIVE Blockchain Technologies, Hut 8 and BC Group. According to financial information filed by Charles Schwab with the Securities and Exchange Commission (SEC), the company is buying Riot Blockchain shares for mutual funds.
In addition, this summer Schwab invested in a platform for creating applications on the Alchemy blockchain. Last fall, Vanguard and Symbiont developed a blockchain platform for the foreign exchange market, and Fidelity has a digital assets division that plans to launch cryptocurrency trading services.
According to reports for the first half of this year, Charles Schwab Investment Management acquired 22,977 Riot shares for $52 000. Two Vanguard Index Fund and Vanguard Valley Forge Index Fund invested in 954,229 Riot shares worth $2.1 million, and two Fidelity funds invested in 176,242 Riot shares worth $230,115 and 2,769,759 HIVE shares worth just over $1 million. Recall that Riot Blockchain and HIVE Blockchain Technologies are engaged in cryptocurrency mining.
Outside the United States, Fidelity’s third fund, Fidelity International, first acquired 10,451,094 shares worth $1.8 each from Canadian mining company Hut 8 and 17 million shares at a price of $8.3 from digital asset trading platform BC Group.
Vanguard has been acquiring Riot shares for three of its funds for the past three years. In 2017, the funds owned 269,610 shares worth $7.9 million, in 2018 – 187,049 shares worth $282 000, and in 2019 – 826,391 shares worth $925 000. Blackstone Group’s alternative investment funds also held Riot Blockchain shares last year, but stopped including them in their portfolios.