BlackRock has decided to add Bitcoin to its portfolio for qualifying investment in the leading global allocation fund, which is one of the most preferred tools for ordinary and inactive investors.
According to Arabiya Net, a disclosure to the company, which is the largest asset manager in the world, showed that this step enables BlackRock to allocate part of the $15 billion fund to the fund for cash-settled Bitcoin futures that are traded on commodity exchanges registered with the Commodity Trading Commission. futures, according to Finance Feeds.
The Global Allocation Fund adopts a fully managed investment policy that uses US and foreign equities, debt and money market securities, the mix of which varies from time to time in response to economic trends.
Under normal market conditions, the primary fund invests no less than 70% of its total assets in corporate and governmental securities. Based on its past performance, it achieved a 5-year total annual return of 10.35%, ranking third among its peers in its category.
BlackRock said in a statement: The fund may invest in cash-settled Bitcoin futures that are traded on commodity exchanges registered with the CFTC.
Last year, BlackRock added Bitcoin futures to the derivative products that two of its funds could invest in. The development came shortly after BlackRock CEO Larry Fink offered a somewhat bullish view of the world's first cryptocurrency.
In a relatively rare endorsement, Fink said Bitcoin has attracted attention and can largely replace gold, but warned that its growing popularity is having a real impact on the US dollar.
At the time, Fink, who had developed BlackRock into the world's largest money management firm, dismissed Bitcoin as nothing more than a vehicle for speculation and money laundering.
The world's largest asset manager launched a blockchain-focused index ETF in April that offers investors exposure to the crypto and blockchain sector.
BlackRock has also signed a partnership agreement with the main brokerage arm of the most popular US-based cryptocurrency exchange Coinbase.
However, the collaboration is limited to Bitcoin and will allow BlackRock institutional clients to access cryptocurrency trading, custody, prime brokerage, and reporting via the Coinbase Prime service.
Customers can also manage their bitcoins and perform risk analysis using BlackRock's Aladdin software suite.
BlackRock also participated in a $400 million funding round for Boston-based Fintech Startup Circle. In addition to its investments and role as primary cash reserves manager for USDC, BlackRock has partnered with Circle to explore capital market applications for its stablecoin.
