It’s getting serious: BlackRock is toying with Bitcoin investments

The world’s largest wealth manager may soon get into the digital gold business with two of its funds. This emerges from two applications that BlackRock filed with the US Securities and Exchange Commission on January 20.

From Saul to Paul:

This is how you could describe the change of attitude at BlackRock when it comes to Crypto Superstar. At least if the matching media reports from the English-speaking crypto space are correct, which distilled two recently submitted BlackRock applications to the SEC an increased donation of the financial giant to digital gold.

Specifically, it concerns the two funds „BlackRock Global Allocation Fund“ and „BlackRock Funds V“. BlackRock has filed a supplement to the respective securities prospectus for both of them with the US Securities and Exchange Commission. The applications indicate that investments in Bitcoin futures will also be reserved in the future.

Each Fund may use instruments called derivatives. These are financial instruments that derive their value from one or more securities, commodities (such as gold or oil), currencies (including Bitcoin) […]

BlackRock also points out the risks that include the volatility of the crypto market, possible regulatory measures and the difficulty of determining the price of Bitcoin, the value of which is not covered by a government or a company. BlackRock also plans to trade Bitcoin Futures exclusively on exchanges that are subject to the supervision of the Commodities and Futures Trading Commission (CFTC). So far, only the Chicago Mercantile Exchange (CME) has come into question.

BlackRock: Bitcoin has been on the radar for a long time

BlackRock’s advance fits into the picture of a growing enthusiasm for Bitcoin among institutional investors, which has further legitimized the number 1 cryptocurrency in recent months. Bitcoin seems to be less and less attached to the dirty image as a darknet currency from its early days. With good reason, after all, with its transparent blockchain, BTC offers a real honey pot for law enforcement authorities who have long since found ways and means to track down careless authors of Bitcoin transactions .

For a long time, BlackRock had also found it difficult to recognize Bitcoin as a legitimate asset. In 2017, Larry Fink, CEO of BlackRock, described Bitcoin as a “speculative money laundering instrument,” which institutional investors avoided with good reason. However, a change of heart at BlackRock has already in 2018 signed . In the years that followed, BlackRock approached Bitcoin more and more. It was not until December 2020 that a job advertisement for the asset manager caused a sensation, in which a search was made for a crypto specialist for the valuation of digital assets. Previously, CEO Fink had already admitted the potential to BTC at the event of a US think tankTo become “a global market”. With Bitcoiners, of course, he runs into open doors.