BlackRock Fund Invests in Bitcoin Through CME Futures

One of the funds of the world's largest asset manager, BlackRock, invested in Bitcoin through the purchase of futures on the Chicago Mercantile Exchange (CME).

February 26, 2021 | AtoZ Markets – BlackRock Global Allocation Fund, managed by BlackRock, has added Bitcoin futures traded on the Chicago Mercantile Exchange to its portfolio.

According to a report filed by BlackRock with the US Securities and Exchange Commission (SEC), BlackRock Global Allocation has bought 37 Bitcoin futures contracts. The futures expiration date was March 26, so now the fund has no investments in digital assets. However, nothing prevents traders from investing in BTC again.

Considering that each Bitcoin contract is equal to the value of 5 BTC, the fund's investments amounted to more than $ 6 million. However, this is only 0.03% of the total fund capitalization, and the income from such an investment was 0.0014% of capitalization, or about 5% of investments.

Recall that in January, two BlackRock funds at once submitted applications to the SEC, in which investments in digital assets were allowed. Apparently, shortly after these applications, the Global Allocation Fund bought Bitcoin futures on the CME platform.

In February, BlackRock's chief information officer, Rick Rieder, revealed that the financial giant has begun actively exploring bitcoin as its clients seek investment opportunities in alternative assets.

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