BlackRock clears bitcoin for its funds

World’s biggest asset manager recognises futures in the cryptocurrency giant as eligible for its BlackRock Strategic Income Opportunities and BlackRock Global Allocation Funds

by Radhika Anilkumar and Bhargav Acharya
BlackRock clears bitcoin for funds
BlackRock’s New York headquarters. Photo: Reuters

BlackRock is adding bitcoin futures as an eligible investment to two funds, a company filing showed, in a move to bring the world of cryptocurrency to its clients.

The world's largest asset manager said it could use bitcoin derivatives for its funds BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund.

The funds will invest only in cash-settled bitcoin futures traded on commodity exchanges registered with the Commodity Futures Trading Commission, the company said in a filing to the Securities and Exchange Commission on Wednesday.

Chief Executive Officer Larry Fink had said at the Council of Foreign Relations in December that bitcoin is seeing big giant moves every day and could possibly evolve into a global market.

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Earlier this month, Bitcoin, the world's most popular cryptocurrency, hit a record high of $40,000, rallying more than 900% from a low in March and having only just breached $20,000 in mid-December.

A BlackRock spokesperson declined to comment beyond the filings when contacted by Reuters. 

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