BlackRock, the world’s largest asset manager with $7.81 trillion under management, has given the green light for two of its mutual funds to invest in Bitcoin futures.
According to two recent SEC filings, the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund can each invest in cash-settled bitcoin futures trading on commodity exchanges registered with the Commodity Future Trading Commission.
The filings, known as statements of additional information, which provide information about mutual funds that are not included in their prospectuses, were filed Jan. 20.
Bitcoin remains an extremely volatile asset. After briefly reaching another record high at close to $42,000 in early January it is now trading about 25% lower.
BlackRock has not officially endorsed investments in Bitcoin or other cryptocurrencies but its chief investment officer of fixed income, Rick Rieder, told CNBC in late November that the cryptocurrency is “here to stay” due to interest from millennials and has the potential to “replace gold to a large extent.”
Bitcoin and other cryptocurrencies have been slowly but gradually attracting the interest of major asset managers such as Fidelity Investments, which recently launched a bitcoin fund for wealthy investors; legendary investors, including Paul Tudor Jones and Stanley Druckenmiller; and even central banks.
The Boston Federal Reserve Bank is conducting research with MIT into a central bank digital currency and the ECB is “very seriously” looking at the creation of the digital euro, according to its president, Christine Lagarde.