According to the SEC, BlackRock held 37 contracts from CME Bitcoin Futures, the price of which rose by $ 360,458. The company’s Bitcoin exposure was minuscule compared to its $ 9 trillion AUM.
The world’s largest asset management company, BlackRock, has now begun to take an interest in Bitcoin futures. According to the latest SEC files published on Wednesday, March 31, BlackRock held 37 contracts from CME Bitcoin Futures earlier this year.
The total value of BlackRock’s Bitcoin futures holdings was just $ 360,458. This was miniscule, representing only 0.001% of the total assets under management. According to order, the contract expired on March 26. However, BlackRock’s affinity for Bitcoin is nothing new to the crypto community.
In early January, BlackRock already intimidated the securities regulator to enter the Bitcoin market. The SEC at that time noted:
“Each Fund may use instruments called derivatives, which are financial instruments that derive their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin), interest rates, credit events or indices (a measure of value or fees, such as the S&P 500 index or the prime loan rate). “
In February 2021, Rick Rieder, director of global fixed income investments at BlackRock, said CNBC about this decision. Rieder said that although Bitcoin’s volatility is high, people still see it as a store of value. He also recalled that inflation continues to rise and debts are accumulating, the company has already started to move in Bitcoin.
The macroeconomic scenario helps Bitcoin and cryptocurrencies
The current macroeconomic scenario has put Bitcoin and cryptocurrencies on a higher pedestal for institutional investors. Fears of impending inflation and currency devaluation are further increasing the chances of cryptocurrencies. Rieder said:
“It is because the duration does not work, interest rates do not work as a hedge and, therefore, diversifying into other assets makes some sense. Keeping a portion of what you keep in cash in things like cryptocurrencies seems to make some sense to me, but I would not adopt a particular allocation or maintenance objective. “
The recent news about BlackRock comes a day after Goldman Sachs’ big announcement. The Wall Street banking giant said it will begin offering Bitcoin and cryptocurrency investment options to its wealth management clients. Mary Rich, the global head of digital assets in Goldman’s private wealth management division, told CNBC:
“We are working closely with teams across the company to explore ways to provide smart and appropriate access to the ecosystem for private equity clients, and this is something we hope to offer in the short term.”