According to a number of documents filed with the US Securities and Exchange Commission (SEC), BlackRock, the world’s largest asset manager, is preparing to enter the Bitcoin Derivatives (BTC) market.
Two publications have appeared – BlackRock Funds V and BlackRock Global Allcoation Fund, Inc. – on the SEC website on Wednesday. Both apps mention the possibility of using derivative bitcoin and other assets as part of the investment scheme. However, none of the deposits contains a final statement on the use of Bitcoin futures now or in the future.
The folder contains the following:
Each fund may use tools called financial derivatives, which are financial instruments that determine the value of one or more securities or commodities (such as gold or oil), currencies (including Bitcoin), interest rates, credit events or indices (a measure of value or ratios, such as the S&P 500 or prime lending rate).
BlackRock also referred to Bitcoin when talking about the various risk factors for derivatives. In the case of Bitcoin, the digital asset can pose a risk of liquidity shortages:
“The fund’s investment in bitcoin futures may involve illiquidity risk because bitcoin futures contracts are not actively traded like other futures contracts, given the bitcoin futures market is relatively new.
BlackRock executives have spoken positively about Bitcoin in recent months, reflecting a broader shift in the company’s attitude towards digital assets. In November, Chief Information Officer Rick Reader said that Bitcoin could largely replace gold.
BlackRock CEO Larry Fink says that Bitcoin caught his attention and could become a global market.
As Cointelegraph reported last month, BlackRock is looking for a Blockchain vice president with a background in crypto assets. The person assigned to the position is instructed to implement strategies “designed to stimulate demand for the firm’s offerings”.