BlackRock, the largest asset manager in the world, has filed prospectus documents with the United States Securities and Exchange Commission (SEC) outlining its potential move into Bitcoin futures.
BlackRock, which holds more than $7.8 trillion assets under management, is looking at setting up two specific funds to participate in cash-settled Bitcoin futures buys.
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SEE ALSO: Grayscale Buys 16, 244 Bitcoins – 18x Daily Bitcoin Mined – in a Single Day
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The two registered funds are:
- BlackRock Global Allocation Fund – Equity, debt and short-term securities ($16 million)
- BlackRock Funds V.
According to the SEC filing:
“Certain Funds may engage in futures contracts based on bitcoin. The only bitcoin futures in which the Funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”
– BlackRock SEC Filing
While the document does not specify the exchanges where the orders will be executed, BlackRock however gives a few investor cautions regarding this new investment. These include:
- Regulatory changes
- Volatility risks
- Valuation risks
The filings appear to officially mark BlackRock’s entrance into the bitcoin market amid rumors of its interest in the space since 2018.
Institutional investors are in a mad rush to hold some of their assets in Bitcoin and other digital assets amid a fragile global economy. Recently, the world’s largest digital asset manager, GrayScale purchased 16, 244 bitcoins in a single and currently holds over $24 billion in digital assets to date.
The recent report by Grayscale also pointed to asset managers dominating its Bitcoin portfolio investments. The addition of the world’s largest asset manager into the scene now makes Bitcoin an interesting asset to watch even more closely in 2021 moving forward.
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About BlackRock
BlackRock, Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world’s largest asset manager, with $7.81 trillion in assets under management as of end – Q4 2020.
BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries.[4] Along with Vanguard and State Street, BlackRock is considered one of the Big Three index funds that dominate corporate America
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RECOMMENDED READING: 87% of Bitcoin Investments in 2020 Came from Institutional Investors, Dominated By Asset Managers, Latest Grayscale Report Reveals
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