During the past three months, BlackRock has made more than $350,000 from bitcoin futures. The company has been dabbling in such futures since January and has garnered a pretty profit in return.
The amount of bitcoin allocated through BlackRock in the futures market, which is small relative to the company's overall assets, however, says a lot about how much the cryptocurrency has moved. BlackRock holds about 37 contracts through the Chicago Mercantile Exchange.
A large amount of money was collected when these contracts were expiring last week, approximately $360,000. The announcement follows a February statement from BlackRock's chief investment officer Rick Reider. The statement read:Now that it has lost a bit of its financial speculative reputation, people can now look to it as a measure of value like gold.
The coronavirus pandemic has taken bitcoin to entirely different arenas, and the currency is being viewed in a positive light at this time. Given how widely the virus is spreading, the dollar has suffered extreme rates of inflation. Global economic ruin has resulted in many types of fiat losing their status as a secure means of wealth preservation. Almost everyone thinks bitcoin is the answer, hence its meteoric rise to $61,000 per unit last month.It all comes down to a statement from BlackRock chief investment officer Rick Reider from February that stated "People are looking for store of value, or "stuff" online. Bitcoin is losing some of its speculative reputation and is now being viewed as currency like gold. View the Asset DifferentlyThe bitcoin’s new reputation as a “store of wealth” has made it widely understood by institutions, not just retailers. ??
The statement read:
Today, the volatility of it is extraordinary, but listen, people are looking for storehouses of value.
As such, the following sentence applies: . While it still has a way to go, the coronavirus pandemic has helped to skyrocket bitcoin into entirely new territory, and the currency is enjoying a much stronger level of respect when compared with how it was viewed just a few short years ago.
The securities firm has been dabbling in crypto futures since January, and has already made a pretty profit as a result.BlackRock has permission to invest in crypto futures, according to documents brought forth by the Securities and Exchange Commission (SEC). Currently, BlackRock manages assets in excess of $8.5 trillion, which means that the amount allocated to bitcoin futures is quite small, although the fact that BlackRock is now taking steps to expand its crypto investments tells us quite a bit about the new status of the currency. The firm received approximately $360,000 by selling these futures last week.
It all comes down to a statement from BlackRock chief investment officer Rick Reider from February that stated "People are looking for store of value, or "stuff" online. Bitcoin is losing some of its speculative reputation and is now being viewed as currency like gold. The coronavirus pandemic has pushed bitcoin into entirely new territory, enabling it to be much more respected than before. One of the reasons for the new attitude toward bitcoin is the fact that USD and other fiats have been under serious pressure due to increased inflation.
Many forms of fiat lost their stance in the financial spectrum due to global shutdowns and the economic ruin of several regions. As a result, many are seeking new ways to protect their wealth. Thus, many largescale firms – such as MicroStrategy, Square and Massachusetts Mutual – have bought hundreds of millions to billions of dollars in BTC, while other established companies like PayPal and Tesla are now allowing customers to make purchases with bitcoin and assorted altcoins at checkout – something crypto was initially created for.
This has also caused the line between crypto and banks to become thinner, with firms such as BNY Mellon now saying it will offer crypto custody services to its clients.Tags: bitcoin, Bitcoin Futures, BlackRock