BlackRock, the world’s largest asset manager, could prepare to enter the Bitcoin derivatives (BTC) market, according to two filings with the US Securities and Exchange Commission.
The two prospectus filings – BlackRock Funds V and BlackRock Global Allcoation Fund, Inc. – were posted on the SEC website on Wednesday. Both documents mention the possibility of using Bitcoin derivatives and other assets as part of the investment plan. Neither document, however, makes a definitive statement about the use of Bitcoin futures now or in the future.
In the prospectus it says:
“Each Fund may use instruments called derivatives. These are financial instruments whose value is derived from one or more securities, commodities (such as gold or oil), currencies (including bitcoin), interest rates, credit events, or indices (a measure of value) or interest rates such as the S&P 500 index or the base rate). “
BlackRock also cited Bitcoin when it came to the various risk factors for derivatives. In the case of Bitcoin, the digital asset can create illiquidity risk:
“Investing a fund in bitcoin futures can involve illiquidity risk as bitcoin futures are not traded as heavily as other futures as the bitcoin futures market is relatively new.”
BlackRocks Executive Brass has been speaking positively about Bitcoin for the past few months, reflecting a wider shift in institutional sentiment toward digital assets. In November, CIO Rick Rieder said Bitcoin had the potential to “largely replace gold”.
Larry Fink, CEO of BlackRock, says Bitcoin has caught his attention and could potentially develop into a global market.
As Cointelegraph reported last month, BlackRock is looking for a blockchain VP with experience in crypto assets. The person hired for the role is tasked with implementing strategies “designed to increase demand for the company’s offerings”.