BlackRock Eyeing Cash-Settled Bitcoin Futures

BlackRock could soon add cash-settled bitcoin futures contracts, according to a new regulatory filing. The world’s largest asset manager, with $7.8 trillion under management, filed prospectus documents on Wednesday for the BlackRock Global Allocation Fund and BlackRock Funds V, saying each […]

share

BlackRock could soon add cash-settled bitcoin futures contracts, according to a new regulatory filing.

The world’s largest asset manager, with $7.8 trillion under management, filed prospectus documents on Wednesday for the BlackRock Global Allocation Fund and BlackRock Funds V, saying each could invest in derivatives that draw value from various financial instruments “including bitcoin.”

Any bitcoin futures the funds can invest in must be cash-settled on Commodity Futures Trading Commission-registered commodity exchanges, according to the filings, which is limited to CME Group in the U.S.

BlackRock highlighted illiquidity, valuation and volatility challenges as potential risks in the filing. Bitcoin futures are so new they aren’t as heavily traded as other futures, it says, and the cash market in bitcoin has been the target of manipulation.

The documents follow comments made last month by BlackRock CEO Larry Fink, which suggested bitcoin could “evolve into a global market asset,” in comments to Bank of England Governor Mark Carney at the Council on Foreign Relations. In November Rick Rieder, the chief investment officer of global fixed income and head of the global allocation team, said bitcoin could rival gold “to a large extent” and that crypto is “here to stay.”

Tags

    Upcoming Events

    Hilton Metropole | 225 Edgware Rd, London

    Mon - Wed, March 18 - 20, 2024

    Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

    Salt Lake City, UT

    WED - FRI, OCTOBER 9 - 11, 2024

    Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

    recent research

    Top Icon.png

    Research

    Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

    /

    article-image

    Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

    article-image

    Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

    article-image

    Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

    article-image

    It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

    article-image

    Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

    article-image

    Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million