The world’s largest asset manager is also seeking a head of blockchain investments.
BlackRock has indicated it is delving into the cryptocurrency business based on recent US Securities and Exchange Commission (SEC) filings in which the world’s largest asset manager has applied to include Bitcoin futures in two of its funds.
According to the filings, BlackRock is looking to add the Bitcoin investments to the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Fund. The firm says in both filings that the funds “may engage in futures contracts based on Bitcoin” and that “the only Bitcoin futures in which the funds may invest are cash-settled Bitcoin futures traded on commodity exchanges registered with the CFTC [Commodity Futures Trading Commission].”
Big Buyers Hit Pause Button as Bitcoin Surges
On 1/26/21 at 1:56 PM EST
Flagging institutional interest in Bitcoin may slow the cryptocurrency s return to a price above $40,000, an analyst said.
Flows into Grayscale Bitcoin Trust, valued at about $20 billion, appear to have slowed, London-based JPMorgan analyst Nikolaos Panigirtzoglou said in a research note. At the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break out above $40,000, JPMorgan said.
JPMorgan Chase and Co. chairman and CEO Jamie Dimon speaks during the Fortune Global Forum on November 4, 2015 in San Francisco, California.
Justin Sullivan
Bitcoin recently changed hands at $31,727.30, down 7.96% in the last 24 hours, CoinDesk reported. Bitcoin, the world s largest crypto-currency, peaked at close to $42,000 on Jan. 8.
BlackRock, the world’s largest asset manager, is deepening its crypto footprint.
“Prospectus documents filed with the U.S. Securities and Exchange Commission Wednesday indicate that BlackRock Global Allocation Fund Inc. and BlackRock Funds V are at least eyeing bitcoin. They both include “bitcoin” on their list of derivative products cleared for use,” reports Danny Nelson for
Bitcoin futures debuted in the U.S. in late 2017.
Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, even allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.
Grayscale buys more than 8,000 Bitcoin after the price dropped from $38,000 to $33,400. BlackRock prepares to allow clients to buy cash-settled Bitcoin
BlackRock has authorized two of its funds to invest in bitcoin futures, according to filings with the SEC. The two funds are: BlackRock Strategic Income Opportunities