On Jan. 20, BlackRock, the world’s largest asset manager with over $8.7 trillion assets under management, appeared to have given the green light to two of its associated funds, BlackRock Global Allocation Fund Inc. and BlackRock Funds, to invest in Bitcoin futures.
In this regard, the prospectus documents filed with the United States Securities and Exchange Commission suggest that BlackRock is looking to dabble in Bitcoin (BTC), especially as the first ever cryptocurrency has been added to the company’s lists of derivative products cleared for use.
Furthermore, over the last few months, the company’s executive brass had spoken positively about Bitcoin, alluding to the fact that in the near future, a number of institutions may look toward digital assets to expand their list of financial offerings.
For example, in an interview last November, Rick Rieder, chief investment officer of BlackRock, said that Bitcoin has the potential to “take the place of gold to a large extent.” A somewhat similar sentiment was echoed by the company’s CEO, Larry Fink, who told the media that Bitcoin has caught the attention of the masses and has the potential to possibly evolve into a global market of its own.
Lastly, it’s also worth remembering that exactly one month ago, BlackRock posted a job advert seeking a qualified individual for the role of vice president, blockchain lead for its New York office. According to the post, the role required applicants to be able to devise and set in motion various strategies that can help “drive demand for the firm’s investments and technology offerings.”
What does BlackRock’s entry mean for the market?
BlackRock investing in Bitcoin futures is a significant step forward for the global crypto ecosystem, as it brings tremendous credibility to Bitcoin as a new asset class. Jason Lau, chief operating officer of cryptocurrency exchange OKCoin, told Cointelegraph that this move will set the stage for other asset managers to follow…