BlackRock has been contemplating the idea of adding Bitcoin to its funds since January. The company is an American multinational investment management corporation founded in 1988.
In a new filing published on Wednesday, it has been confirmed that the investment firm has already begun trading Bitcoin.
The filing shows that BlackRock held 37 futures contracts from the Chicago Mercantile Exchange, worth more than $360k. The amount of these futures is very small in comparison with the total assets’ worth of the company. These contracts terminated on the 26th of March.
In fact, BlackRock is the world’s largest asset manager. It is ahead of companies like Vanguard, UBS, Fidelity, JPMorgan Chase, and BNY Mellon. With $8.67 trillion in assets, it is currently holding the largest amount of cash it has held in the last 30 years. This is why cryptocurrency assets were essential.
“People are looking for places that could appreciate under the assumption that inflation moves higher and that debts are building, so we’ve started to dabble a bit into it”. – Rick Rieder, the chief investment officer of global fixed income of BlackRock, in an interview in January for CNBC.
He also believes that the technology advancements and regulations of Bitcoin have been vast. This has changed to a certain extent that makes it a good choice for investments.
“My sense is the technology has evolved and the regulation has evolved to the point where a number of people find it should be part of the portfolio, so that’s what’s driving the price up,” he added.
To stay up to date with the latest news on crypto markets, read our daily articles!