BlackRock has joined the bitcoin business – the world’s largest asset manager has said two of its funds can now invest in the cryptocurrency | Currency News Financial and Business News


BlackRock has authorized two of its funds to invest in bitcoin futures, according to a filing released Wednesday with the Securities and Exchange Commission.

The move allows cryptocurrencies to be exposed to clients of the world’s largest asset manager for the first time.

The $ 8.7 trillion asset manager said it could use bitcoin derivatives, among other assets, under the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund.

The funds will only be allowed to trade cash-settled bitcoin futures after the contract ends, which means the holder will receive a simple cash credit. Such settlements do not require physical delivery of the underlying asset.

More specifically, two BlackRock funds will trade only those bitcoin futures trading on exchanges registered with the Commodity Futures Trading Commission. Currently, the only exchange that is registered to do so is the CME.

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Bitcoin scored a record high above $ 41,000 earlier this month, driven largely by record-breaking amounts of money being pumped into economies by governments and central banks to aid relief from the coronavirus crisis. The ticket was trading at around $ 33,181 on Thursday – a drop of almost 6% on the day.

BlackRock reported assets under management of $ 8.68 trillion as of December 31. In December, CEO Larry Fink reported that the world’s most popular cryptocurrency saw massive daily movements and could potentially evolve into a global market.

Rick Rieder, the company’s chief investment officer, he told Bloomberg shortly thereafter there is a clear demand for bitcoin and that it is “going to be part of the asset chain for investors for a long time.”

Not everyone is a fan of cryptocurrencies. US Treasury Secretary Janet Yellen, formerly head of the Federal Reserve, said earlier this week that bitcoin and the like are being used “mainly” for illegal activity and that their use should be curtailed .

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