The trillion-dollar asset manager BlackRock seems to be turning its attention towards the world’s largest digital currency by market value, Bitcoin (BTC), as it is planning on investing in Bitcoin (BTC) futures. Reportedly, the asset management company has filed two filings with the United States Securities and Exchange Commission (SEC), which shows that the firm is gearing up to build exposure to BTC futures.
BlackRock is known as the largest asset management firm, which has approximately $7.81 trillion worth of assets under management. It is now stepping into Bitcoin futures with two of its filings with the SEC and intends to make certain allocations of this product.
Its twin filings with the SEC reveal that it intends to purchase BTC futures through its funds. The firm has filed for two funds, including BlackRock Funds V and BlackRock Global Allocation Fund Inc. This means that these two funds have been granted the ability to make an investment in Bitcoin futures.
BlackRock filed its prospectus documents with the SEC for two funds on the 20th of January. It has said that its funds might invest in only those BTC futures that are cash-settled and are available for trading on commodity exchange platforms registered with the US Commodity Futures Trading Commission (CFTC). The firm, however, has not revealed the name of the commodity exchange it intends to use for the execution of the purchase of Bitcoin futures.
These filings also highlighted various risks that could come with the investment of funds into such kinds of products. Investing in BTC futures could have liquidity risk as the market of bitcoin futures is yet new to the world, and this product is not heavily traded as well.
Larry Fink, the Chief Executive Officer (CEO) of BlackRock, who regarded the leading digital currency as a money laundering index three years ago, also seems to have acknowledged the rising fame of Bitcoin. Last year in the month of December, Larry said that the top-ranked cryptocurrency has got the potential to become a global market asset.
The entrance of big financial institutions into the cryptocurrency market has always been good for digital currencies, especially for Bitcoin. Last year, various major financial firms stepped into the flagship cryptocurrency, which boosted the price of Bitcoin upward. BlackRock might become the latest firm to gain exposure to Bitcoin through its Bitcoin futures product.