BitMine Immersion Technologies is expected to enter the Russell 1000 Index, joining the index that tracks the largest public companies in the U.S. and serves as an industry-standard benchmark for equity exposure across institutional portfolios.
Passively managed index funds and exchange-traded funds that mirror Russell benchmarks typically hold 20% to 25% of a member company’s total market cap, Lee added, hinting at a massive, multi-billion dollar wave of forced buying that could soon drive demand.
For BitMine, Russell 1000 inclusion could stoke inflows from investors who aren’t necessarily aware of the company’s mission to grow the amount of Ethereum that it owns per share and secure 5% of Ethereum’s total supply, a sum valued at roughly $12.8 billion on Monday.
BitMine isn’t the only crypto firm that’s affected by the reconstitution: Ethereum treasury company SharpLink is slated to join the small-cap Russell 2000 Index alongside crypto exchange Gemini. Meanwhile, crypto financial services firm Galaxy Digital is expected to join the large-cap Russell 1000 Index.
