BlackRock Gives 2 Funds Go-Ahead to Invest in Bitcoin FuturesDanny Nelson – CoinDesk
BlackRock, the world’s largest asset manager appears to have granted at least two of its funds the ability to invest in bitcoin futures.
Prospectus documents filed with the U.S. Securities and Exchange Commission Wednesday indicate that BlackRock Global Allocation Fund, INC, and BlackRock Funds V are at least eyeing bitcoin. They both include “bitcoin” on their list of derivative products cleared for use.
BlackRock did not state which commodity exchange it will choose to execute bitcoin futures buys. However, the funds may only invest in cash-settled bitcoin futures. CME is the only CFTC-registered commodities exchange that offers cash-settled bitcoin futures at this time.
The filings warn that investments in bitcoin futures could carry illiquidity risks due to the “relatively new” market. Regulatory changes, volatility, and valuation risks could similarly weigh on the price and thus “adversely impact a Fund.”
The filings appear to mark BlackRock’s entrance into the bitcoin market. Before Wednesday, the investments giant has never so much as mentioned “bitcoin” in any of its regulatory filings. But that appears to be changing: “Certain Funds may engage in futures contracts based on bitcoin,” the prospectus documents state.
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