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BlackRock to Invest in Bitcoin Futures

BlackRock, the biggest asset manager in the world, which has $7.81 trillion under its management, has plans to get into bitcoin. The company has filed with SEC to have two funds investing in bitcoin futures.

Rocking the Bitcoin

BlackRock has filed two “statements of additional information” with the SEC on Wednesday. One of them was for BlackRock Funds V, while the other was for BlackRock Global Allocation Fund Inc. In both cases, it was stated the following:

“Certain funds may engage in futures contracts based on bitcoin.”

The filings go to mention that “the only bitcoin futures in which the funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”

The documents also add that “regulatory changes or actions may alter the nature of an investment in bitcoin futures or restrict the use of bitcoin or the operations of the bitcoin network or exchanges on which bitcoin trades in a manner that adversely affects the price of bitcoin futures, which could adversely impact a fund.”

This isn’t the first time BlackRock is associated with Bitcoin. In December, the CEO of BlackRock, Larry Fink, made some bullish statements regarding the King of Crypto: “Can it [bitcoin] evolve into a global market? Possibly.” He also mentioned that “having a digital currency makes the need for the U.S. dollar to be less relevant.”

BlackRock is just one of the asset management firms that have started to invest in bitcoin. The list includes Ruffer and Skybridge, while Guggenheim has announced similar investment plans; it is currently pending approval from SEC.

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