New BlackRock documents cite possibility of introducing derivatives on Bitcoin


BlackRock, the $7.8 trillion U.S. asset manager, has filed new documents with the SEC in which „Bitcoin“ is mentioned 25 times

It seems that BlackRock, the world’s largest asset manager, is preparing for its entry into the derivatives market on Bitcoin (BTC): this is revealed by some documents filed with the Securities and Exchange Commission (SEC) of the United States.

The two documents in question, filed by the „BlackRock Funds V“ and the „BlackRock Global Allocation Fund,“ appeared yesterday on the SEC’s website. Both mention the possibility, not confirmation, of using derivatives on Crypto Profit and other assets as part of their investment program.

Specifically, the documents can read:

„Each Fund could 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 rates, such as the S&P 500 Index or the Prime Lending Rate.“

BlackRock also mentions Bitcoin later in the section on various derivatives risk factors:

„A Fund’s investment in Bitcoin futures may involve illiquidity risks, as it is not traded as frequently as other futures, as the BTC futures market is relatively new.“

In recent months, a number of BlackRock executives have expressed very positive views on Bitcoin, highlighting how opinion on Wall Street about cryptocurrencies is gradually changing. Rick Rieder, CIO of Fixed Income at BlackRock, predicted in November that BTC „will largely take the place of gold [because] transferring Bitcoin is much more practical than moving gold bars around.“

Larry Fink, CEO of BlackRock, revealed a few weeks later that his firm is following Bitcoin developments very closely:

„Bitcoin has captured the attention and imagination of many people. But it has not yet been tested, and it is quite small compared to other markets. […]

Can it become a global market? It’s possible.“

Demonstrating BlackRock’s interest in cryptocurrencies, right now the firm is looking for an individual to take on the role of „Vice President, Blockchain Lead“ for its New York office. The candidate must have at least one year of experience in the blockchain business, as well as understand concepts such as „cryptographic hash functions, consensus mechanisms within distributed networks, and public/private key-based cryptography.“