BlackRock, with $7.8 trillion in assets, to enter bitcoin futures market

The world’s largest asset manager BlackRock has said that two of its funds may trade bitcoin futures. This follows from documents filed with the U.S. Securities and Exchange Commission (SEC).

BlackRock just filed documents with the SEC that contain extensive discussion of Bitcoin. Excerpt: «Certain Funds may engage in futures contracts based on bitcoin.»

This appears to be the first time BlackRock has made such mentions.

Link to filings:https://t.co/qREGtJjIov

— MacroScope (@MacroScope17) January 20, 2021

The matter concerns BlackRock Funds V and BlackRock Global Allocation Fund. As Decrypt writes, the latter manages $16 million, and last year its ROI stood at 19.72%. About 70% of the fund was invested in corporate and government securities.

According to the documents, the funds may trade only cash-settled futures on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).

BlackRock noted regulatory risks and relatively low liquidity of bitcoin futures.

BlackRock has assets of about $7.8 trillion under management.

Back in 2018, BlackRock CEO Larry Fink said that cryptocurrencies did not interest his clients, but two years later, in 2020, he suggested that the cryptocurrency market would become global.

In November 2020, BlackRock’s Chief Investment Officer Rick Rieder recognised the advantages of Bitcoin over gold.

Towards the end of the year, the company posted a vacancy for a Vice President of blockchain.

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