BlackRock, an international asset management company, has announced that it holds Bitcoin (BTC) Futures in one of its funds as of this January. Bitcoin is a decentralised cryptocurrency, that can be exchanged using its peer-to-peer network. The removal of intermediaries when transferring funds and its secure blockchain protocol are just a few of the many reasons why Bitcoin investments and the associated technologies are gaining attention.
Blackrock, the worlds largest hedge fund and asset manager, has revealed that it holds Bitcoin (BTC) Futures in one of their many investments as of January. Bitcoin is a decentralised cryptocurrency that uses a peer-to-peer network to facilitate transactions. The removal of third parties when exchanging funds and its reliable blockchain network are just some of the reasons why Bitcoin investing, and its technology are gaining widespread attention.
The US Security and Exchange commission reported that the BlackRock Global Allocation fund had purchased 37 units of CME’s March 2021 Bitcoin futures for approximately $360,000 according to the filing with the contract set to expire on March 26.
It has been noted that BlackRock previously stated to include cash-settled Bitcoin futures as investment options in at least two of its funds. Observing the timing for the filings from January 20, purchases of CME Bitcoin futures may have occured afterwards. This is since the filings only consist of details up until January 31. It is uncertain if the company will keep its CME Bitcoin futures. yet, given the overall growth and popularisation of cryptoassets, BlackRock is likely to retain and elevate their involvement.
Blackrock have previously announced to include cash-settled Bitcoin futures as options for investment in at least two of its funds. However, observing the timing of both filings on January 20, purchases of CME’s Bitcoin futures may have taken places later. This is since the filings only feature details up to January 31. It rema uncertain if Blackrock will retain its CME Bitcoin futures. Nevertheless, given the surge in popularity and growth of cryptoassets, Blackrock is likely to retain its position and even increase their existing involvement.
During an appearance on CNBC in February, Blackrock CIO Rick Rieder announced that the company was “starting to dabble” in Bitcoin investments. He revealed that he feels the innovation and regulation have developed to the extent that many now believe it should be a part of BlackRock’s portfolio, which is what is push the price of Bitcoin up.
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