The world’s largest asset manager shows interest in joining the bitcoin club
BlackRock, an asset management company with $7.81 trillion, has filed with the Securities and Exchange Commission (SEC) for two of its funds to be able to invest into bitcoin futures. Prospectus documents show the funds in question are BlackRock Funds V и BlackRock Global Allocation Fund.
Previously, the investments giant has never had a mention of “bitcoin” in any of its regulatory filings. But this time, according to prospectus documentation, “Certain Funds may engage in futures contracts based on bitcoin.”
BlackRock also acknowledged the regulatory and liquidity risks connected with investments in bitcoin futures, which derive from the fact that the market is new and the futures are not traded to the same extent as other futures products.
Last November, the company’s CIO for fixed income, Rick Rieder, told CNBC that bitcoin and cryptocurrencies are likely “here to stay” even if they are regulated by authorities and could potentially substitute gold, noting that virtual money is “much more functional” than the precious metal.