BlackRock, the largest asset management company in the world, has submitted documents to the SEC outlining a potential move into Bitcoin futures trading.
The asset management giant has more than $7.8 trillion assets under management. There were prior reports in 2018 that BlackRock had set up a group to consider whether they should move into Bitcoin futures.
The documents themselves show BlackRock in cash-settled Bitcoin futures on CFTC registered exchanges. “Certain Funds may engage in futures contracts based on bitcoin,” the document notes”. The only bitcoin futures in which the Funds may invest are cash-settled bitcoin futures. Traded on commodity exchanges registered with the CFTC.”
There are two specific BlackRock funds that may get involved in Bitcoin futures trading: the BlackRock Global Allocation Fund and BlackRock Funds V. The Global Allocation Fund is worth around $16 million and invests in equity, debt, and short-term securities. Around 70% of its assets are securities issued by corporate and government bodies.
The documents also say that BlackRock could start using derivatives and specified that it includes Bitcoin among the currencies. The firm did also acknowledge however, that there is less liquidity in Bitcoin markets and, especially, Bitcoin futures trading.