Tom Lee identifies liquidity catalyst for Ethereum BitMine after Russell Index update

BitMine Immersion Technologies is expected to enter the Russell 1000 Index, joining the index that tracks the largest public companies in the United States and serves as the industry benchmark for equity exposure across institutional portfolios.

The listing, which is due to be completed after the closing bell on June 26, comes as part of FTSE Russell’s half-yearly restructuring. Ministerial reshuffle Market capitalization limits between different groups of stocks to reflect the changing landscape on Wall Street.

BitMine’s market cap was $10.7 billion, well above the $5.7 billion threshold for listing large-cap companies, Tom Lee, chairman of the board, said in a press release. mail on saturday. “Many active managers only buy stocks in the Russell 1000 index,” he noted.

Passively managed index funds and exchange-traded funds that reflect Russell’s standards typically hold between 20% to 25% of the total market capitalization of the member company, Lee added, hinting at a massive multi-billion-dollar wave of forced buying that could soon lead to a surge in demand.

the Ethereum– Shares of the companies purchased closed Friday at around $18.88, down 30% year-to-date, according to Yahoo Finance. The stock has traded largely sideways since falling to $17.19 in February, after rising to $161 last year. (Disclosure: Mine is Investor in DastanThe parent company of an independent editorial board Decryption.)

For BitMine, a Russell 1000 listing could lead to increased inflows from investors who are not necessarily aware of the company’s mission of increasing the amount of Ethereum it holds per share and locking in 5% of the total supply of Ethereum, an amount valued at about $12.8 billion on Monday.

The company currently controls 4.6 million Ethereum worth $10 billion, which represents 3.8% of the total Ethereum supply, according to Ethereum Strategic Reserve. The company began accumulating Ethereum aggressively last July.

Ethereum was trading at around $2,100 on Monday, according to the Verge. Queen Gekko. The second-largest digital asset by market capitalization fell 7.8% over the past month.

BitMine isn’t the only cryptocurrency company affected by the restructuring: Ethereum treasury firm SharpLink is set to join the small-cap Russell 2000 index alongside cryptocurrency exchange Gemini. Meanwhile, crypto financial services company Galaxy Digital is expected to join the large-cap Russell 1000 index.

Strategy, the world’s largest Bitcoin holder, joined the Russell 1000 index about two years ago. In January, MSCI indicated that it would allow companies like Strategy to remain in its major global stock indices, while… situation A controversial proposal on the ice.

This move would have stripped public companies that own more than 50% of their total assets in digital currencies from the index. But the decision ultimately led to avoiding what could have happened, according to analysts’ estimates Billions of dollars In forced institutional selling.