BlackRock grants 2 funds to invest in Bitcoin futures. The world’s largest wealth manager BlackRock appears to have given at least two of its funds the opportunity to invest in Bitcoin futures.
The prospectus documents filings with the Securities and Exchange Commission on Wednesday show BlackRock Global Allocation Fund Inc. and BlackRock Funds V are the least likely to keep an eye on it Bitcoin. Both funds add the world’s oldest cryptocurrency to their list of approved derivatives.
The company has not specified which commodity exchange it will choose to make these Crypto-Futures purchases. However, the funds may only invest in cash settled Bitcoin futures. The only other exchange registered with the Commodity Futures Trading Commission (CFTC) that offers similar products is CME.
The filings warn that because of the “pretty new” Market investments in these futures could involve illiquidity risks. Regulatory changes, uncertainties and valuation risks can also put a strain on the price “Affect the Fund.”