It is another great day for Bitcoin, as reports suggest, that the world’s largest asset manager, BlackRock, now deals with Bitcoin Futures. A regulatory filing suggested the new market focus of the asset management company. As per Coindesk, the company held $6.5 million in CME Bitcoin futures and also had a profit of $360,457. This represented a very small fraction of their entire profit and investments at just 0.03% and 0.0014%, respectively. The company has already given two of its funds the permission to go forward and trade BTC futures.
Bitcoin futures or Bitcoin’s future!
The price of BTC is already skyrocketing and BlackRock starting to deal with Bitcoin futures is just another positive to the mix. Since it is the world’s largest asset manager, the impact it has is huge. They have over $8 trillion under management as of the last quarter of 2020, and we are pretty sure that is going up every month. And with such a client base dealing in BTC futures could mean a huge potential investment in the cryptocurrency.
Rick Reider, who first told about Blackrocks new interest in BTC, also said that they think people are looking to preserve the value of money. Under the fact that debts are going to increase and so is inflation, we can safely assume that BTC has a future. This is why BlackRock entered the market in the first place. The plan that the company made in January to provide BTC futures to clients has finally materialized now.
Another important thing that BlackRock firmly believes in is diversification. Since they are holding a lot of cash, investment in crypto seems to be a good idea. And there is no fixed amount that could be termed appropriate for this allocation this Rieder.
BTW what are futures?
The future market is basically betting on the future of any stock, commodity, and now even crypto. In this, the buyer and seller agree to transact at a particular price in the future. These are legal contracts and must be settled on or before the expiration dates. So, buying a BTC future would probably mean that you are investing in the future of the curreny. There are a lot of other factors to this like tick size, contract or option, and several more.
What are your thoughts on BlackRock giving options to purchase BTC futures? And do you think that slowly every company and bank will get into the crypto community? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.