BlackRock, one of the world’s largest money managers, disclosed in regulatory filings that its funds have an $11 million stake in Curaleaf Holdings, a Massachusetts-based medical cannabis company.
While the investment is tiny for BlackRock, which has nearly $6 trillion of assets under management, the stake is one of the first publicly disclosed investments by a major institutional investor into U.S. cannabis.
“Most institutional investors and banks have stayed on the sidelines for investing in cannabis businesses that touch the plant,” John Brecker, a partner at New York-based cannabis venture fund Altitude Investment Management, told Bloomberg.
The BlackRock investment makes it the largest institutional investor in Curaleaf, according to Bloomberg.
In filings with the U.S. Securities and Exchange Commission, five BlackRock funds reported holding Curaleaf stock, Bloomberg reported, topped by BlackRock Resources & Commodities Strategy Trust, which has about 1.1 million shares.
Curaleaf announced plans Wednesday to sell hemp products in 800 CVS drug stores in 10 states.
BlackRock trades on the New York Stock Exchange under the ticker symbol BLK.