The world’s largest investment company BlackRock secretly trades Bitcoin

Investment firm BlackRock indicated in documents released in January to the US Securities and Exchange Commission that it may add bitcoin futures to its funds in the future.

However, as it turned out the day before, the management of the financial giant has already done this. In a new report from the regulator, the BlackRock Global Allocation Fund indicated that the fund has 37 futures contracts with the Chicago Mercantile Exchange (CME) worth almost $ 360,458, or 0.0014 percent of total assets. At the same time, the total amount of assets under the management of BlackRock reaches $ 9 trillion.

In general, futures are an agreement to buy or sell a specific asset at a specified time at a predetermined price in the form of a contract. Moreover, the contract itself requires the presence of both parties, since in the absence of a seller or a buyer of goods, such a futures simply will not make sense. In the case of Bitcoin futures, we are talking about the willingness to conduct a transaction with the first cryptocurrency at a certain price.

In general, futures allow market participants to speculate about the future price of an asset. On cryptocurrency exchanges, these contracts also make it possible to use leverage – that is, to trade with the leveraged funds of the platform.

Since BlackRock trades BTC futures, the company’s management not only monitors what is happening in the financial market, but also considers the cryptocurrency industry a promising niche for making money. And this allows you to have no doubt about the future of the blockchain asset industry – especially given the size of the company.

Who buys bitcoins from companies

BlackRock is the world’s largest investment management company for its clients, outperforming giants such as Vanguard, UBS, Fidelity, JPMorgan Chase and BNY Mellon in terms of activity.

It is noteworthy that back in 2018, BlackRock CEO Larry Fink noted the low interest of clients in investment products related to digital assets. Here is an archived quote from him that clearly demonstrates the changes in attitudes towards cryptocurrencies that have occurred during this time. The cue is from Decrypt.

Right now, I can tell you that in the whole world I do not have a single client who would say «I need to invest in crypto».

Larry Fink BlackRock

BlackRock CEO Larry Fink

As a result, the new cycle of cryptocurrency growth has put everything in its place. Now, billions of dollars are poured into Bitcoin by large organizations, foundations and even small businesses. So far, BlackRock has made a relatively small investment not even in Bitcoin itself, but in futures.

It is important to note here that earlier sources confirmed information that the investment company is looking for a new CEO for the blockchain research department. And it seems likely that in the future, BlackRock management will follow the example of other corporations and directly invest in BTC. And at the same time, it will allow its own clients to invest in blockchain assets.

BlackRock investments company


Cryptocurrencies have long been a hot topic of discussion among financial regulators around the world. On the eve of the desire to introduce stricter regulatory rules for outdoor advertising promoting cryptocurrencies, said representatives of the National Commission for the Securities Market (CNMV) of Spain. This decision was announced at a recent conference by the president of the organization, Rodrigo Buenaventura. According to him, the regulator considers such advertising «risky» and wants to discuss this issue with its advisory committee.

Following the consultation, the regulator plans to propose stricter rules for street advertising related to cryptocurrencies and forward this proposal to the Spanish Council of State. The latter is the supreme advisory body, advising the country’s government on legislative initiatives. Here is the point of view voiced by the employees of the department.

It must be emphasized that CNMV will not monitor assets, suppliers, or trades, but only advertisements that promote alternative investment routes.

Buenaventura added that the agency must ensure that the proposed solution does not harm legitimate businesses in the cryptosphere. And this is the right decision, because in some cases, incorrect advertising can really mislead novice investors. Such a «soft» approach to regulating the cryptocurrency market will only accelerate the adoption of digital assets and protect inexperienced investors from participating in pyramids and other dubious schemes that use the reputation of cryptocurrencies for promotion.

We believe BlackRock’s involvement in the cryptocurrency industry will benefit the reputation of blockchain assets. Since the world’s main investors interact with coins and invest relatively large amounts of money in them, it means that they are ready to experiment and get acquainted with the new direction of the world of finance in practice. And this is a serious reason to do the same for those people who have not yet had time to figure out how blockchain technology works.

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