BlackRock moves to invest in Bitcoin futures

Investment management firm BlackRock has granted two of its funds the ability to invest in Bitcoin futures.

Prospectus documents filed with the US Securities and Exchange Commission yesterday show that the BlackRock Global Allocation Fund and BlackRock Funds V are now looking at Bitcoin opportunities.

Both funds now include Bitcoin on their lists of derivative products cleared for use.

BlackRock did not state which commodity exchanges it will use to execute crypto futures buys, but it stressed the funds will only invest in cash-settled Bitcoin futures.

CME is the only exchange registered with the Commodity Futures Trading Commission (CFTC) that offers such futures products at this time.

The SEC filings warn that such investments could carry illiquidity risks due to the “relatively new” market.

They add that regulatory changes, volatility and valuation risks could also weigh on their price and therefore “adversely impact a fund”.

BlackRock's chief executive Larry Fink last year acknowledged that Bitcoin’s rising popularity and value could turn it into a global market asset.

One Bitcoin is currently worth just under £24,000.

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