World’s Largest Asset Management Firm $6.3 Trillion Blackrock Set to Join Bitcoin Bandwagon Asset Management Giant BlackRock Hints at Investing in Bitcoin Futures.
BlackRock’s Funds Contemplating Bitcoin Futures Investment
In a pair of filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday (Jan. 20, 2021), Blackrock revealed that two of its funds may include b. The funds are BlackRock Global Allocation Fund, Inc and BlackRock Fund V.
Meanwhile, the filings were specific about the nature of bitcoin futures that the funds may trade. According to the documents, the BlackRock funds may only invest in cash-settled bitcoin futures traded on exchanges registered by the U.S. Commodity Futures Trading Commission (CFTC).
An excerpt from the SEC filings stated:
“Each Fund may use instruments referred to as derivatives, which are financial instruments that derive their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin), interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate).”
The documents, however, noted the risks associated with bitcoin futures investment and the market was not yet mature and could come with illiquidity risk. BlackRock’s filings added: