BlackRock adds Bitcoin derivatives to its fund

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? 🤔