BlackRock grants 2 fund to invest in bitcoin futures. The world’s largest asset manager BlackRock, seems to have granted at least two of its funds the capability to invest in bitcoin futures.
The Prospectus documents that were filed with the U.S. Securities and Exchange Commission on Wednesday demonstrate that BlackRock Global Allocation Fund Inc. and BlackRock Funds V are in the least eyeing bitcoin. Both funds include the world’s oldest cryptocurrency on their lists of derivative products cleared for use.
The firm did not specify which commodity exchange it will decide to choose to execute these crypto futures buys. However, the funds may only invest in cash-settled bitcoin futures. The only other exchange registered with the Commodity Futures Trading Commission (CFTC) offering similar products is CME.
The filings warn that because of the “relatively new” market, investments in these futures could bear illiquidity hazards. Similarly, regulatory changes, uncertainty and risk of valuation may weigh on the price and thus “adversely impact the Fund.”