A recent filing with the US Securities and Exchange Commission (SEC) has revealed that the world’s largest asset management company has allowed two of its top funds to invest in Bitcoin.
As stated in a report by InsideBitcoins, BlackRock Funds V and BlackRock Global Allocation Fund Inc. can now invest in Bitcoin derivatives. Now, these funds can access credit events, indices, interest rates, commodities, and currencies.
In a statement, the asset manager, which has more than $8 trillion in assets under management, said:
“The only Bitcoin futures in which the Funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”
In addition, BlackRock also stated the risks involved with investing in cryptocurrencies. Some of these risks include illiquidity, regulatory matters, and valuation issues. Speaking further, BlackRock warned about Bitcoin being a target of fraud and how this could affect the company’s funds.
Before now, BlackRock CEO Larry Fink said that Bitcoin is capable of replacing gold. Fink said this at a time when Bitcoin was recording significant gains. He also added that Bitcoin was becoming a threat to the US Dollar.
Bitcoin is currently down 9.45% to $31,478.49. With a trading volume close to $70 billion in the last 24 hours, the top digital asset has t a market capitalization of over $588 billion.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
