The world’s largest asset manager, Blackrock has shown interest in Bitcoin trading and investment. The company sent a prospectus document to the United States Securities and Exchange Commission (SEC). The document states the company’s possible move into Bitcoin futures.
These funds are:
- BlackRock Global Allocation Fund – about $16 million from Equity
- BlackRock Funds V
According to BlackRock SEC Filing –
Specific Funds may engage in bitcoin-based futures contracts. The Funds can only invest in bitcoin futures that are cash-settled futures. Meanwhile, the Funds can only be traded on commodity exchanges with CFTC registration and license.
Meanwhile, the document did not state specific exchanges where it will execute the others. However, BlackRock did give caution to investors regarding this investment. These cautions include:
- Volatility risks
- Regulatory changes
- Valuation risks
Thus, this filing seems to mark BlackRock’s official interest in the Bitcoin market. Recall that back in 2018, there were rumors of the company’s interest in BTC. Likewise, in 2020 BlackRock CEO did say that Bitcoin will soon become more valuable than Gold.
Recently, a large digital asset manager, Grayscale bought 16,244 Bitcoins. Currently, Grayscale holds over $24 billion worth of digital assets. In its recent report, Grayscale also said that investors are dominating its Bitcoin portfolio
In like manner, BlackRock has also shown interest in Bitcoin trading. Thus, adding them to the list of institutional investors is a massive development for $BTC. Therefore, Bitcoin might be just the most interesting asset to leverage in 2021.