The multinational investment management giant BlackRock has recently taken its first BTC steps by obtaining futures contracts through CME. BlackRock has also revealed that it has managed $360k BTC gains through the Chicago Mercantile Exchange today.
BlackRock Discloses $360k BTC Gains Through CME Futures
In accordance with the recent filings with the United States Securities and Exchange Commission (SEC), the investment management giant BlackRock has begun to dabble with BTC.
The investment firm purchased a segment of the March 2021 BTC Futures of CME that crossed its expiration on March 26.
With around $9 trillion in assets under management, this firm is the largest investment management company in the world leaving behind JPMorgan Chase, Vanguard, UBS, BNY Mellon, and Fidelity.
After the CIO of BlackRock, Rick Rieder said that Bitcoin is in the market to stay for a long time and additionally revealed that it has the potential to replace gold. Since then, a positive approach in the market has been witnessed.
Though Rick didn’t specify the exact nature of their attempt related to Bitcoin investment.
According to a filing released, the BlackRock Global Allocation fund held around 37 units of the March 2021 BTC futures of CME.
The Biggest Domino to Fall
Larry Fink, the CEO of BlackRock, has recently revealed his beliefs regarding the interests of the clients of the firm as they were not interested in exposure to crypto. He released a statement to Bloomberg saying:
“Right now I can tell you, worldwide, I have not from one client who said ‘I need to be in this.”
However, it should be noticed that BTC is not the exact same thing as the futures contract, the latter is considered as a bet on the cost of the former.
Moreover, the need to actually execute a purchase is eliminated, and the futures contracts of the Chicago Mercantile Exchange are settled in cash instead of tokens.