Takeover by „secret world power“? – BlackRock plans to invest in Bitcoin

The notorious asset management company is applying to be allowed to invest in Bitcoin futures.

The world’s largest and most influential asset management company BlackRock, which is also known as a “ secret world power ”, is planning investments in Bitcoin ( BTC ), more precisely in derivatives of the cryptocurrency. This emerges from two applications that were filed with the US Securities and Exchange Commission.

The two applications called „BlackRock Funds V“ and „BlackRock Global Allcoation Fund, Inc.“ were on Wednesday on the official website of the SEC published . In both letters, BlackRock cites a wide variety of derivatives that asset management intends to use as investment products for the investment funds applied for, whereby Bitcoin is explicitly mentioned several times.

So it says:

“Each of the mutual funds is intended to use instruments known as derivatives. These are financial products that derive their value from stocks, commodities (such as gold or oil), currencies (including Bitcoin), bonds or indices (i.e. financial products that serve as a yardstick for specific performance such as the S&P 500). “

However, BlackRock also uses the market-leading cryptocurrency as an example to explain the risk factors of derivatives. With Bitcoin this would be an impending lack of liquidity:

„Investing in Bitcoin futures carries the risk of insufficient liquidity, because Bitcoin futures are not traded as heavily as other futures because the market for Bitcoin futures is still relatively young.“

The management level of the „secret world power“ has already made positive comments about Bitcoin in the past few months. In November, CIO Rick Rieder said that Bitcoin had the potential to “take over large market shares from gold”.

BlackRock CEO Larry Fink added that Bitcoin has piqued his interest and could potentially become a globally recognized financial product

As Cointelegraph reported last month , BlackRock also plans to hire a new vice president for the blockchain area, which specializes in cryptocurrencies. This is to implement a strategy that “drives demand for the company’s investment products”.

The large asset management is also notorious in Germany, because the CDU politician and possible candidate for Chancellor Friedrich Merz was in a leading position at the German branch of BlackRock. The company is a shareholder in many important companies, so connections always controversial in politics discussed be. It remains to be seen whether Bitcoin is threatened with such a „takeover“.