BlackRock Inc., the New York City-based world’s largest investment management corporation founded back in the 1988s, included bitcoin futures as an eligible asset in two of its funds, a BlackRock Inc. filing with the US SEC (Securities and Exchange Commission) had unveiled.
According to the filing that dated back to January 21, the world’s largest capital manager having had $7.81 trillion worth of assets under management, would allow its investors to use bitcoin derivatives on two of its funds such as BlackRock Global Allocation Fund Inc alongside BlackRock Strategic Income Opportunities, remarking a breakthrough move for Bitcoin, the original cryptocurrency, alongside other smaller assets which had long been looking to a regulatory leakage to enter into mainstream trading activities.
Besides, as part of a security measure given the scale of high-stake fraudulences and money laundering activities having been taken place in bitcoin, BlackRock had also added in the filing lodged with the US Securities and Exchange Commission late on Wednesday that the aforementioned BlackRock funds would only be allowed to invest on cash-settled bitcoin futures on commodity exchanges which had been registered with Commodity Futures Trading Commission.
BlackRock to allow bitcoin investment in two of its funds
Nonetheless, in the latest flashpoint of a growing optimism among the investors over a mainstream adoption of digital asset as a currency, latest move from BlackRock Inc., the largest capital management firm across the globe, would more likely to persuade more firms to follow its footprints to allow investments in digital assets while offering a robust exposure to crypto assets likes of bitcoin, suggested analysts.
Meanwhile, referring to a cryptocurrency market which became more matured and liquid lately, a director of mutual find research at CFRA, Todd Rosenbluth said, “It’s easy to see how strong the performance has been of late and look at a historical asset allocation strategy that would have included a slice of crypto and how returns would have been enhanced as a result.
Large institutional investors are going to be able to tap into the futures market in a way that a retail investor could not do. ” However, bitcoin nosedived as much as 10.60 per cent on Thursday late-afternoon US trading hours to $31,154.40 after hitting a record peak above $42,000 earlier this month, while Ethereum took a tattering header of 11 per cent to $1,154.