After signaling its intention to get exposed to bitcoin, Blackrock, the worldâ€™s largest asset manager, has now revealed its initial investments toward the crypto asset. According to the asset managerâ€™s filing with the Securities and Exchange Commission (SEC) on March 31, Blackrock, through its Global Allocation Fund, held 37 bitcoin futures contracts worth $6.15 million.
According to one report, the contracts, which expired on March 26, had already appreciated in value by some $360,458. Meanwhile, with this modest investment into bitcoin futures, Blackrockâ€™s SEC filing proves the leading asset manager has acted on its promise to invest in the crypto asset.
The holdings, 37 contracts in total, were about 0.03% of the firmâ€™s Global Allocation Fund. Earlier in the year, a Bitcoin.com News report quoted Blackrock CIO Rick Rieder suggesting that his organization had â€œstarted to dabbleâ€ in bitcoin. With this SEC filing, Blackrock has now officially confirmed its pivot towards the crypto asset.
In the meantime, with this filing, Blackrock, which has nearly $9 trillion worth of assets under management (AUM), has also increased its indirect exposure to the crypto asset. Prior to the SEC filing, Blackrock acquired over one million class A common stock in the Nasdaq listed Microstrategy, one of the first major companies to add bitcoin to their balance sheet.
Blackrock has been discussing the benefits of bitcoin a great deal over the last few months as Blackrock executive, Russ Koesterich, has claimed: â€œgoldâ€™s ability to hedge against inflation has been somewhat exaggerated.â€ And despite the crypto assetâ€™s volatility, Blackrockâ€™s chief investment officer of global fixed income, Rieder has stressed that â€œpeople are looking for storehouses of value.â€
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