After Blackrock, the world’s largest wealth manager, signaled its intention to suspend Bitcoin, it has now announced its first investments in the crypto wealth. According to the asset manager’s filing with the Securities and Exchange Commission (SEC) on March 31, Blackrock held 37 bitcoin futures contracts valued at $ 6.15 million through its Global Allocation Fund.
According to a report, the contracts, which expired on March 26, had already seen an increase in value of around USD 360,458. With this modest investment in Bitcoin futures, Blackrock’s SEC filing proves that the leading asset manager has kept its promise to invest in the crypto asset.
The holdings, a total of 37 contracts, represented approximately 0.03% of the company’s Global Allocation Fund. Earlier this year, a Bitcoin.com news report quoted Blackrock’s CIO Rick Rieder as saying that his organization had started looking into Bitcoin. With this SEC filing, Blackrock has now officially confirmed its linchpin for the crypto asset.
Meanwhile, with nearly $ 9 trillion (AUM) of assets under management, Blackrock has also increased its indirect exposure to the crypto asset. Prior to filing with the SEC, Blackrock acquired over one million Class A common shares on Nasdaq-listed Microstrategy, one of the first major companies to add Bitcoin to its balance sheet.
Blackrock has been discussing the benefits of Bitcoin a lot over the past few months, as Blackrock manager Russ Koesterich has also done claims: “Gold’s ability to hedge against inflation is a bit of an exaggeration.” And despite the volatility of crypto assets, Blackrock’s chief investment officer for global fixed income, Rieder has emphasized that “people are looking for value stores.”
What do you think of Blackrock’s investment in BTC futures? Let us know what you think in the comments section below.
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