BlackRock, the world’s largest asset manager, has authorised two of its funds to invest in bitcoin futures, according to filings released with the Securities and Exchange Commission (SEC). The $8.7 trillion asset manager has filed paperwork acknowledging that its funds 'may engage in futures contracts based on bitcoin.' This would allow it to hold bitcoin derivatives, among other assets, in the BlackRock Income Opportunities fund and the BlackRock Global Allocation fund.
The funds are geared to trade cash-settled bitcoin futures, which means the holder will receive cash credit once the contract expires. Some community members say they saw the move coming, when, back in November, Rick Rieder, BlackRock’s CIO of Global Fixed Income told CNBC he thinks cryptocurrency is here to stay and that he believes it’s durable. “Do I think it will take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around.”
Even more telling was BlackRock CEO Larry Fink’s remarks that he believes crypto could evolve into a global asset.
Marc Bernegger, a board member at digital asset manager and broker Crypto Finance, told the Financial Time: “Bitcoin is a global macro asset and I think more and more traditional asset managers are realising its value as a portfolio hedging tool. This is good for bitcoin because it means more liquidity and a healthier market.”