It has been reported that the two prospectus filings — BlackRock Funds V and BlackRock Global Allocation Fund, Inc., appeared on the SEC website on Wednesday.
However, both filings mention the possibility of using Bitcoin derivatives and other assets as part of its investment scheme. Neither filing makes a definitive statement about the use of Bitcoin futures now or in the future.
The prospectus states:
“Each Fund may use instruments referred to as derivatives, which are financial instruments that derive their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin), interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate).”
According to the report, BlackRock also cited Bitcoin when referring to the various risk factors for derivatives.
In Bitcoin’s case, the digital asset may induce illiquidity risk:
“A Fund’s investment in bitcoin futures may involve illiquidity risk, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new.”
Likewise, BlackRock’s executive brass has spoken positively about Bitcoin in recent months, mirroring a broader shift in institutional sentiment towards digital assets.
In November, Rick Rieder, the CIO of BlackRock, said that Bitcoin has the potential to “take the place of gold to a large extent.”
Thus, Larry Fink, BlackRock’s CEO, said that Bitcoin has caught his attention and could possibly evolve into a global market.