BlackRock Inc. is adding Bitcoin futures as an eligible investment to two funds, the first time the money manager is offering its clients exposure to cryptocurrency.
The worlds largest asset manager filed updated prospectuses for a pair of funds including cash-settled Bitcoin futures among assets theyre permitted to buy. The filings for BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund Inc. appeared on the Securities and Exchange Commission website Wednesday. Derivatives using cash settlement do not require delivery of the underlying asset.
BlackRock, which oversees $8.7 trillion, is signaling a new willingness to test the waters of Bitcoin. Chief Executive Larry Fink said in a 2018 interview that the firms clientswerent interestedin owning crypto. But more recently, executives have shown an increased openness to the asset, which is sometimes compared to digital gold.
A BlackRock spokesperson declined to comment beyond the filings.
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Rick Rieder, BlackRocks chief investment officer for global fixed income, said in a Bloomberg Television interview last year that theres a clear demand for Bitcoin and that its going to be part of the asset suite for investors for a long time.
The move demonstrates that the asset class is gaining respectability, said Nic Carter, general partner at Castle Island Ventures.
Its certainly more evidence for the institutionalization thesis thats really been the theme of this bull market, he said.
Bitcoin, which surged in the final stretch of 2020, was trading for about $34,858 at 3:43 p.m. in New York, according to Bloomberg composite prices.
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The post BlackRock allows crypto exposure in two funds appeared first on InvestmentNews.
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