BlackRock adds Bitcoin derivatives to its fund
It looks like Bitcoin price is starting to slowly shake off the slumber it has been in lately.
😴 Last week, Bitcoin’s 30-days volatility reached a historic low of 18.7 points, falling even lower than Nasdaq’s and spurring very different predictions as to what would happen next: a slump or a surge.
🚀 The status quo changed over the weekend, when not only $BTC gained 4%, but the shares of a troubled Grayscale Bitcoin Trust, which were previously traded with a stunning 50% discount, suddenly gained 12%.
🏛️ What could possibly change professional investors’ mood? As often, a bold move from another professional investor, and as it happens – the world’s best.
💰 Traditional finance giant BlackRock has declared that it will add Bitcoin-based products to its $18.5 billion Global Allocation Fund, which allows millions of people to gain passive income. The products include “cash-settled Bitcoin futures that are traded on commodity exchanges registered with the CFTC”, i.e. mostly Bitcoin contracts on CME, Chicago Mercantile Exchange.
⛏️ Last year, Blackrock’s CEO Larry Fink shared his belief that a “digitized currency” (i.e. Bitcoin) will help consumers around the world. The company is also the largest shareholder of a Texas-based Bitcoin miner Core Scientific, which filed for bankruptcy in the end of December. The miner has reached an agreement with BlackRock and other lenders, who will commit $75 million in exchange for equity.
BlackRock is a huge investment company with $10 trillion (!) of assets under management. After several encouraging steps in the Bitcoin direction, adding its derivatives to a fund with a pronounced retail purpose comes as an affirmation, and could sway the current market mood.
Could this be a new crypto cycle’s beginning? 🤔
