BlackRock Financial Management has recently revealed, by way of filings from the US Securities and Exchange Commission (SEC), that the Bitcoin Futures contracts it offers have seen significant amounts of appreciation this year.
Gaining 0.00142% Profit Overall
The SEC released today the monthly portfolio investments report for Blackrock, which showed that it held a total of 37 Bitcoin Futures contracts. These contracts were issued by way of the Chicago Mercantile Exchange, and had expired on the 26th of March, 2021. As one would imagine, this caused a significant appreciation in the contracts, going up by $360,457.
Now, these BTC futures contract gains aren’t much in Blackrock’s grand scheme of things, representing only 0.00142% of its Global Allocation Fund. The company boasts a total of $8.6 trillion and over in terms of total assets under management, or AUM.
Cautiously Keen On Crypto
It was just last month when Rick Rieder, the Chief Investment Officer for BlackRock, revealed that the fund had been “dabbling” a bit within the crypto space. In particular, Rieder revealed that many investors are now seeking for places that appreciate should inflation go higher as the world’s debts are building.
Reider admitted to the merits of holding a certain portion of one’s cash in cryptocurrencies or things like it, but refrained from giving any target holding or certain allocation. Simply put, he observed that the technology itself, and the regulators involved in it, have both evolved to such a point that investors are now keen on making it a part of their portfolio.
Possibility For Future Investments
It was back in January of this year when BlackRock had mentioned Bitcoin, doing so through two prospectus filings with the SEC. These filings had made it clear that there was a significant possibility that BlackRock, a multi-trillion-dollar asset manager, was leveraging some sort of crypto derivative or other sorts of asset, making it part of its overarching investment scheme.
Time will tell if BlackRock will re-evaluate its investment scheme with this information in mind. Bitcoin, and most other cryptocurrencies for that matter, have an innate ability to be extremely volatile. What this means is there’s no real way of determining whether or not the coin will rise and drop as easily as other assets. This volatility works in many’s favors, and works against many others, as well. With equal parts skill and luck, a trader is capable of earning a very sizable amount of money.