Asset manager BlackRock says it has made more than $350,000 in bitcoin futures over the past three months. The company has been dabbling in such futures since January and has garnered a pretty profit in return.
BlackRock Is Beginning to Make Money On BTC Futures
As it stands, two funds associated with BlackRock have permission to invest in crypto futures according to documentation brought forth by the Securities and Exchange Commission (SEC). At the time of writing, BlackRock currently manages more than $8.5 trillion in overall assets, which means that the amount allocated in bitcoin futures is quite small, though the fact that the company is now taking steps towards crypto investments says a lot about how much the currency’s status has changed.
Right now, BlackRock holds approximately 37 futures contracts through the Chicago Mercantile Group (CME). These futures expired last week, which resulted in the firm raking in approximately $360,000. All this comes after a February statement from BlackRock chief investment officer Rick Reider that mentioned the company had begun getting involved in a few crypto investments here and there.
The statement read:
Today, the volatility of it is extraordinary, but listen, people are looking for storehouses of value.
Over the past year, bitcoin has lost some of its speculative reputation and is now being viewed as a store of value like gold. 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.
One of the reasons for this new attitude surrounding bitcoin is the idea that USD and other forms of fiat have been straddled with heavy rates of inflation over the past 12 months given how far the virus has spread. Global shutdowns and the economic ruin of several regions has resulted in many forms of fiat losing their stance in the financial spectrum, and thus many have sought new tools for keeping their wealth safe. So far, bitcoin has been a big answer for most people, resulting in its meteoric rise to a whopping $61,000 per unit last month.
Many Companies See the Asset Differently
The new “store of wealth” reputation garnered by BTC has also been viewed and felt by institutions, not just retailers. 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.