BlackRock’s New SEC Filings Hints at Preparations to tap Into Bitcoin Derivatives Market

By Jenny Aurora | January 26, 2021

BlackRock – global top-tier asset managing entity – reportedly seems to be preparing to set foot in the Bitcoin (BTC) derivatives market, via a new pair of filings with the US SEC

Specifically, The two prospectus filings – dubbed BlackRock Funds V and BlackRock Global Allcoation Fund, Inc. – were reportedly available for public view across the SEC web page on Jan 20th. 

Both filings reportedly brought up a possible scenario of utilizing Bitcoin derivatives and different assets, as part of its investment scheme. 

“Each Fund may use instruments referred to as derivatives, which are financial instruments that derive their value 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 rates, such as the S&P 500 Index or the prime lending rate).”

BlackRock additionally mentioned Bitcoin, when talking about the risk factors that can affect derivatives.

“A Fund’s investment in bitcoin futures may involve illiquidity risk, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new.”

BlackRock’s executive members have reportedly displayed a pro-attitude when talking about Bitcoin in the past months, reflecting a wider change, regarding institutional sentiment towards crypto assets. 

In November, CIO Rick Rieder reportedly shared Bitcoin has the ability to “take the place of gold to a large extent.”

Larry Fink, Head of BlackRock, reportedly claimed that Bitcoin has captured his interest and possesses the potential for evolution into the international market.

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