BlackRock, the world’s largest asset manager, could prepare to enter the Bitcoin Derivatives (BTC) market, after a few presentations to the US Securities and Exchange Commission or SEC for its acronym in English.
The two prospect presentations, BlackRock Funds V and BlackRock Global Allcoation Fund, Inc. were made public on the SEC’s website this Wednesday. Mention both presentations the ability to use bitcoin derivatives and other assets as part of your investment plan. However, neither of the two submissions makes a definitive statement about the use of Bitcoin futures now or in the future.
The leaflet says:
“Each Fund can use instruments called derivatives. These are financial instruments whose value is derived from one or more securities, commodities (such as gold or oil), currencies (including Bitcoin), interest rates, credit events or indices (a measure of value), or interest rates such as the SP 500 index or the base rate) “.
BlackRock also cited Bitcoin when it came to the various risk factors of derivatives. In the case of Bitcoin, the crypto asset can create illiquidity risk:
“Investing a fund in bitcoin futures can involve illiquidity risk as bitcoin futures are not traded as frequently as other futures as the bitcoin futures market is relatively new.”
BlackRock executives have been positive about Bitcoin over the past few months, reflecting a wider shift in institutional sentiment toward digital assets. In November, CIO Rick Rieder said Bitcoin had the potential to “replace gold on a large scale”.
Larry Fink, BlackRock CEO says that Bitcoin caught your attention and could potentially develop into a global market.
As Cointelegraph reported last month, BlackRock is looking for a vice president of blockchain with experience in crypto assets. The person hired for the position is commissioned with the implementation of strategies “to increase the demand for the company’s offers”.