According to recent revelations, the Bitcoin investment giant BlackRock has been speculating on “change” since the end of March 2021. An internal corporate document indicates that BNY Mellon, which oversees assets worth $9.5 trillion, not only continues to trade Bitcoin futures, but also earns side income from the activity.
Investment Giant BlackRoc: Bitcoin Holdings increased by 45%
The investment giant BlackRock is engaging in a double game with Bitcoin, retaining its (very genuine) interest in the king of cryptocurrencies while simultaneously reducing its exposure to it. Following on the heels of its successful initial Bitcoin futures purchases in the first quarter of this year, the behemoth looks to have done so again in the second quarter, this time betting even more on the cryptocurrency.
BlackRock Global Allocation Fund owned 54 BTC futures contracts on the Chicago Mercantile Exchange (CME) as of July 31, according to a recent filing with the Securities and Exchange Commission (SEC) in the United States.
It was previously reported that 37 contracts were exchanged during that time period, a considerable rise from the last reporting in late March. However, this represents a small percentage of the total assets of a company the size of the investment giant BlackRock.
Futures Contracts for the BlackRock Global Allocation Fund
The Bitcoin of the investment giant BlackRock already generated capital profits of $370,000.
Because each of these Bitcoin futures contracts is comprised of a batch of 5 Bitcoins, BlackRock retains ownership of 270 Bitcoins. The asset manager says that his Bitcoins have increased by $369,137 in value since they were valued at approximately $10.8 million at the time of the accounting document.
While these sums may appear modest for a company of a size like the investment giant BlackRock, it is important to note that the company is exposed to the rise of cryptocurrencies in other – less obvious – ways.
Even more noteworthy here is that the investment firm controls roughly 15% of MicroStrategy, a publicly traded business well-known in the cryptosphere for having amassed a genuine fortune from its Bitcoin investments (over 114,000 BTC at present).
It is easy to understand why Rick Reeder, the managing director of BlackRock, is so bullish about Bitcoin as an investment. According to the CEO, the volatility of the most popular cryptocurrency is not a negative factor. The opposite is true; according to his own words, it is an asset that will most likely allow the price of Bitcoin to “increase considerably.”