BlackRock allows Bitcoin futures as eligible investment for two funds

BlackRock allows Bitcoin futures as eligible investment for two funds

BlackRock Inc, the renowned investment management firm, is reportedly adding Bitcoin futures as qualifying investment to two funds, as per a company filing. As per credible sources, the move is expected to provide its clients exposure to cryptocurrency.

The firm stated that it can use Bitcoin derivatives for its funds BlackRock Global Allocation Fund Inc and BlackRock Strategic Income Opportunities.

BlackRock stated in a filing to the Securities and Exchange Commission, that the funds would invest only in cash-settled Bitcoin futures exchanged on commodity exchanges listed with the CFTC (Commodity Futures Trading Commission).

Larry Fink, CEO, BlackRock Inc,, had stated at the CFR (Council of Foreign Relations) in December that Bitcoin is witnessing immense moves each day and might possibly grow into a global level.

At the beginning of this month, Bitcoin, the globe’s most famous cryptocurrency struck a record high of around US$40,000, rallying around 900% from March lows and having breached only US$20,000 in mid of December.

However, Bitcoin’s torrid rally has lost more steam this week, with the cryptocurrency lying less than its ten-day moving average as well as coming down for a second day straight on Thursday.

As per the price data compiled by Bloomberg, Bitcoin dropped to around 8.4% over a 2-day slide and was trading for about US$34,670 at around 6:38am in London. The extensive Bloomberg Galaxy Crypto Index came down to around 1%.

Director of mutual fund research, CFRA, Todd Rosenbluth stated that other American asset managers are highly likely to follow in the steps of BlackRock and effectively add exposure to bitcoin in some way to their macro strategies as the market for cryptocurrency becomes much more liquid and much more advanced.

At present there are no United States-based exchange-traded fund who own bitcoin, thereby restricting the ability of various fund managers to own the cryptocurrency in their portfolios.

Source credit: https://www.straitstimes.com/business/banking/blackrock-to-add-bitcoin-as-eligible-investment-to-two-funds