BlackRock SEC Filings Indicate Bitcoin Interest

Recent filings with the Securities and Exchange Commission (SEC) suggest that BlackRock – the world’s largest asset manager, with over $7 trillion under management – is preparing to allocate funds in bitcoin futures.

As per the filling, The only bitcoin futures in which BlackRock will invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.

However, the fund manager giant does outline potential risks involving the illiquidity of a futures contract, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new and significant Bitcoin price volatility relative to traditional asset classes.

Last month, Larry Fink – CEO of Blackrock, updated his stance on Bitcoin, now acknowledging its potential global relevance. In a conversation with Bank of England governor Mark Carney, he said: “Can it evolve into a global market? Possibly.” Fink’s comments last month follow Blackrock fixed income CIO Rick Rieder’s comments, where he suggested bitcoin could eat into gold’s market cap.

The SEC has a long history of bringing enforcement actions against fund managers alleging a mismatch between what investors are told their funds are invested in and what investors’ funds are actually invested in. Therefore, SEC filings are important regulatory documents required of all public companies to provide timely key information and disclosures.

So, BlackRock is taking the regulatory path to disclose the move that it may trade in bitcoin futures. This does not necessarily mean BlackRock will buy Bitcoin futures anytime soon.