Since declaring interest in Bitcoin, Blackrock, the world’s largest asset management firm has now revealed its first’s investment plan towards the crypto assets. According to the asset manager’s report 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.
Information from one report shows that the contracts had expired on March 26 but had appreciated to the tune of $360,458. In the meantime, with this humble investment into bitcoin futures, Blackrock’s SEC filing proves the foremost asset manager has acted on its pledge to invest in the crypto asset.
The assets, 37 contracts in number, were about 0.03% of the firm’s Global Allocation Fund. In the first quarter of the year, a Bitcoin.com news report quoted Blackrock’s CIO Rick Reider signifying that his organisation had “started to dabble” in Bitcoin. With this SEC filing, Blackrock has formally established its pivot towards crypto assets.
In the interim, with this filing, Blackrock, which has virtually $9 trillion worth of assets under management (AUM), has also enlarged its indirect exposure to the crypto assets. Recall that before 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 talking about the benefits of bitcoin a great deal over the last few months as Blackrock executive, Russ Koesterich has claimed: “gold’s ability to hedge against inflation has been somewhat exaggerated.” And despite the crypto asset’s instability, Blackrock’s chief investment officer of global fixed income, Rieder has stressed that “people are looking for storehouses of value”.