On Jan. 20, BlackRock Capital filed prospectus documents with the US SEC to include Bitcoin derivatives in two of its investment products.

• BlackRock has provided support for Bitcoin futures buys for its BlackRock Global Allocation Fund Inc. and BlackRock Funds V products
• These futures will have to settle in cash, and BlackRock has not stated yet which exchange it will use to execute these trades
• Rick Rieder, BlackRock’s Chief Information Officer, in an interview on CNBC said that Bitcoin was “much more functional” than gold
• BlackRock Capital is the world’s largest asset manager, managing over $7.81 trillion as of Q4 2020
• The arrival of BlackRock would be a tremendous validation of Bitcoin and is likely to attract a considerable amount of attention from high-profile investors
• The firm joins several others in entering the market in recent months; both Guggenheim and Ruffer Investments have praised and benefited from investing in Bitcoin