$7.8T AUM Firm, BlackRock Gears Up For Bitcoin Exposure; Approves 2 Funds to Invest In BTC
With more than $7.8 trillion in assets behind it, BlackRock represents one of the largest asset managers in the world and has recently indicated a turn towards cryptocurrencies. This turn is according to filings it recently approved from two of its funds. Specifically, BlackRock approved BlackRock Global Allocation Fund Inc. and BlackRock Funds V, according to prospectus documents filed and submitted to the US Securities and Exchange Commission.
For the moment, BlackRock has yet to specify which commodities exchanges would be used in order to complete the purchase of Bitcoin Futures. But, according to the asset manager, the approved funds will only be allowed to invest in cash-settled futures, to mitigate risk, and there are still some that BlackRock observes:
“A Fund's investment in bitcoin futures may involve illiquidity risk, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new.”
BlackRock's Steady Walk to Bitcoin
BlackRock's move towards investing in Bitcoin comes as a profound surprise for many. Up until recently, the investment management company had done little to allude to such a move. However, any filings under the SEC have proven to serve as a pretext for diving into new investments.
During a panel discussion in December, BlackRock CEO Larry Fink hinted at the growing legitimacy of digital assets as their asset class, but expressed caution to those expressing impetuosity, stating that “we have to go through many markets to see if it's going to be permanently real.”