BlackRock enters the Bitcoin business through cryptocurrency futures with two funds

The firm this week submitted the details of the operation to the Securities and Exchange Commission (SEC, its acronym in English) of the United States.

Bitcoin is back on the ground after its precipitous fall. According to data from CoinDesk, the main cryptocurrency in the market reached US $ 28,845 in the last 24 hours. Now it rises more tenuously and is positioned above US $ 32,300. So far this year, it accumulates a return of almost 10%.

Despite this volatility, interest in developing Bitcoin is growing in the financial sector. The latest to join is BlackRock. The largest investment manager in the world and based in New York, on Wednesday entered the Securities and Exchange Commission (SEC, its acronym in English) of the United States the prospects of the funds BlackRock Global Allocation Fund and BlackRock Funds V, in which it was detailed that within the portfolio they could participate in Bitcoin futures.

The company chaired by Larry Fink told the regulator that “The only Bitcoins futures the funds can invest in are cash-settled futures that are traded on CFTC-registered commodity exchanges.”

It also warned that changes or actions that regulators may take may alter the nature of an investment in Bitcoin futures or restrict its use or operations, negatively affecting the price of Bitcoin futures, and therefore funds.

Added that “Investing a fund in Bitcoin futures can carry illiquidity risk, as Bitcoin futures do not trade as much as other futures since the market is relatively new.”

The SEC is warned that “the Bitcoin cash market has been subject to fraud and manipulation, which could affect the price of Bitcoin futures contracts. “

It was emphasized that both Bitcoin futures and the cryptocurrency itself, “have generally exhibited significant price volatility relative to more traditional asset classes. Bitcoin futures can also experience significant price volatility as a result of the aforementioned fraud and market manipulation. “

Along these lines, he stressed that “The value of Bitcoin, like the value of other cryptocurrencies, is not endorsed by any government, corporation, or other identified body.”


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