BlackRock's PFF ETF's MSTR preferred stock exposure is a key allocation

2026-01-29 11:25:25

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BlackRock’s iShares Preferred and Income Securities ETF (ticker PFF) holdings related to crypto assets have attracted market attention. According to the holdings data as of January 16, the ETF’s overall exposure to various preferred stock products of Strategy (MSTR) is $380 million, with a significant position in a single product. As a publicly listed company focused on Bitcoin, MSTR offers new income options for institutional investors through the issuance of multiple preferred stock products.

BlackRock PFF Fund’s MSTR Position Allocation

PFF is an ETF tracking a broad benchmark of U.S. preferred stocks, investing in hybrid securities that combine bond fixed-income characteristics with equity ownership features. In the fund’s holdings, Stretch (STRC) is a perpetual preferred stock issued by MSTR, ranking as the fourth-largest holding, with an exposure of $210 million, accounting for 1.47% of the total fund size. STRC currently pays an annualized yield of 11%, with monthly cash dividends and a monthly yield reset mechanism designed to stabilize the product price near the $100 par value, reducing volatility risk.

MSTR Multi-Product Exposure in the ETF as an Investment Layout

In addition to STRC, PFF also allocates to several other preferred stock products of MSTR. Strife (STRF) has an exposure of $97.5 million, representing 0.69%; Stride (STRD) is allocated approximately $73 million, with a weight of 0.51%. Furthermore, the fund directly holds about $90 million in MSTR common stock, with a weight of 0.64%. This multi-layered product allocation reflects the comprehensive strategic positioning of large asset management firms within the MSTR ecosystem.

Market Liquidity and Performance of Related Assets

As of the most recent trading session, STRC traded around $99.94, slightly below its face value. Meanwhile, cryptocurrencies such as XRP are also experiencing market adjustments, with spot XRP ETFs attracting net inflows of $91.72 million this month, indicating sustained institutional interest in certain crypto assets. This suggests that despite market volatility, institutional investors’ demand for structured crypto-related products remains robust.

BTC-7,73%

XRP-7,95%

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