BlackRock opens door to bitcoin in boost for cryptocurrency

BlackRock, Wall Street’s biggest money manager, is opening the door to investing in bitcoin futures in a potential boost to the controversial cryptocurrency.

The filing of securities from the investment giant shows that at least two BlackRock funds can buy bitcoin, a digital currency that has seen wild swings since being introduced over a decade ago.

BlackRock said it could buy bitcoin contracts that have been approved by regulators while recognizing the risks of these investments. The company confirmed this was the first time it had indicated it could invest in the cryptocurrency.

“The future of Bitcoin and bitcoin has generally exhibited significant price volatility compared to more traditional asset classes,” the company said in a filing with the Securities and Exchange Commission.

“Bitcoin’s future may also experience significant price volatility as a result of market fraud and manipulation.”

BlackRock noted that bitcoin values ​​are “determined by participants in an online, peer-to-peer network” and that the digital asset “is not supported by any government, corporation, or other identified body.”

The digital currency created through a complex computational process called bitcoin “mining”, has seen its value soar to as much as $ 40 000 while also seeing a 20% dive in recent years .

Bitcoin and other cryptocurrencies have been linked to non-business activity on the “dark web” and some inexperienced investors have lost their digital assets.

Despite living on the periphery of the investment world, bitcoin has attracted interest from established money managers seeking returns in a market that has been rocked by the global economic crisis.

But such investments are still considered highly speculative.