BlackRock, the world’s largest asset manager, with assets worth $7.81 trillion appears to be considering introducing a Bitcoin futures investment function to at least two funds.
On the 20th, BlackRock submitted two investment product descriptions to the Securities and Exchange Commission (SEC), including’BlackRock Global Assignment Fund Inc. and BlackRock Funds V’. According to the investment product description released on the SEC website, both funds include bitcoin in their list of derivatives available in the future.
In the investment product description, Blackrock did not specifically mention which exchange to use to execute cryptocurrency futures purchases. However, these funds are likely to invest only in cash-set Bitcoin futures. Currently, the Chicago Merchandise Exchange (CME) is the only exchange that offers cash-settled futures products under the approval of the Commodity Futures Trading Commission (CFTC).
In two prospectus filings with the SEC, Blackrock warned that (Bitcoin) futures products could pose a liquidity risk due to the “relatively early” market nature. BlackRock also added a warning that changes in the regulatory environment, volatility and risk can also depend on price, which could have a negative impact on the fund.
The investment prospectus released on this day is interpreted as a signal flare for Black Rock’s entry into the cryptocurrency market.
So far, Blackrock hasn’t mentioned bitcoin significantly in any of the documents submitted to the regulator. However, the change in Blackrock’s attitude toward cryptocurrency was first spotted, as the recently released investment product description included “certain funds may include bitcoin-based futures contracts.”
In November 2020, Rick Rieder, Chief Investment Officer of Black Rock Fixed Income, told CNBC that “Bitcoin is much more functional than gold,” as well as being a significant substitute for gold, crypto He said the influence of money “will continue to last”.
Larry Fink, Black Rock co-founder and CEO, also drew attention in December of last year, saying that Bitcoin has the potential to become a global financial asset.
Blackrock recently posted a hiring announcement for an executive in the blockchain and cryptocurrency sector and is looking for a vice president of the blockchain sector to work in the New York office.
Blackrock said it is looking for talented people who can create a cryptocurrency evaluation model in their job postings and also evaluate the governance model and underlying technologies of individual cryptocurrency projects.
Translation: Jeong In-sun/Coindesk Korea
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