BlackRock Continues to Invest in Bitcoin
BlackRock, an investment manager, has added bitcoin futures to its Global Allocation Fund.
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Global Allocation Fund managers can buy BTC futures on exchanges registered with the Commodity Futures Trading Commission.
Although the cryptocurrency is volatile in the short term, the asset usually shows good returns in the long term. This is probably why BlackRock saw value in BTC, at its lowest price in several years, for their clients' portfolios.
The Global Allocation Fund is one of the first few funds to include cryptocurrency. This proves that BTC could be a suitable asset even within a conservative investment portfolio.
Perhaps, after BlackRock's innovations bring positive results, other investment companies will follow the market leader's example and add BTC futures and other digital derivatives to their funds.
The Global Allocation Fund is a multi-asset fund with a diversified asset portfolio: American, European, and Asian stocks, debt obligations, and capital market securities. Financial instruments are periodically changed and supplemented depending on economic conditions. According to the fund’s management policy, it invests about 70% of its funds in shares of leading issuers. According to the BlackRock website, the size of the Global Allocation Fund is $18,457 million.
BlackRock's allocation fund clients are usually white-collar people who have savings to invest but don't have the time or inclination to follow the market.
BlackRock is moving towards cryptocurrencies
BlackRock has previously added BTC futures to the list of available derivatives for two of its other funds. The event happened against the backdrop of an optimistic statement by Larry Fink, the CEO of the investment company, about Bitcoin. He stated that the first cryptocurrency could supplant gold, and noted that the popularity of BTC affects the US dollar. For many, his words came as a surprise, as he considered Bitcoin a speculative asset and a tool for money laundering.
In October 2022, BlackRock created an ETF for companies from the blockchain industry, through which investors gained access to the cryptocurrency sector and blockchain technology.
In August 2021, BlackRock partnered with Coinbase, the American crypto exchange. The collaboration provided the company's institutional clients access to bitcoin trading and market analysis using Coinbase Prime accounts.
Finally, the investment giant provided $400 million in funding for Circle, which issued the USDC stablecoin, and became one of its main partners.
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