BlackRock Files To Add Bitcoin Futures To Funds

BlackRock Files To Add Bitcoin Futures To Funds

Topline

Investment giant BlackRock filed documents with the Securities and Exchange Commission showing that it wants to include cash-settled Bitcoin futures as eligible investments for two of its funds—the latest instance of a major financial institution dipping a toe into cryptocurrencies.   

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Key Facts





Two new filings, for the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Portfolio, state that “certain funds may engage in futures contracts based on bitcoin.” 





The filings add that the only bitcoin investments the funds will be allowed to buy are “cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”





The regulatory filings are not a guarantee that BlackRock will add bitcoin futures to the new funds, but they are a sign that the investment giant is considering them. 







BlackRock also acknowledged the liquidity risks that accompany investments in bitcoin futures, which stem from the fact that the market is new and the futures are not as heavily traded as other futures products.  







Surprising Fact

Three years