BlackRock is coming into the Bitcoin market?

[LeGaulois]

It looks like BlackRock, the most important asset manager worldwide FYI, is preparing to enter the Bitcoin dance with us.
If this is the case, I don't dare to imagine the reaction of the market, not only in the short term but also in the long term since these institutions don't usually come just for a vacation.


It's a document sent to the SEC https://www.sec.gov/Archives/edgar/data/0001738078/000119312521012149/d96814d497.htm






It will be done via the CMEGroup, so no underlying bitcoin, but still...

[Dutchyyy]

Oh, even only with derivates/futures, this could be hugeeee!

"The date of this Statement of Additional Information is April 29, 2020 (as amended January 20, 2021)."

I wonder when we shall feel the impact as the document is 8 months old, but is amended today?

[cryptopediabd]

It looks like BlackRock, the most important asset manager worldwide FYI, is preparing to enter the Bitcoin dance with us.

I m hearing about BlackRock first time. So hope that big investors join to the party. More news in the air here.
BlackRock Takes First Step Into Crypto Exposure in Two Funds: https://www.bloomberg.com/news/articles/2021-01-20/blackrock-files-to-add-bitcoin-futures-to-two-of-its-funds
BlackRock Takes First Step Into Crypto Exposure in Two Funds: https://finance.yahoo.com/news/blackrock-files-add-bitcoin-futures-194410995.html

[figmentofmyass]

2.5 years ago this is what blackrock's CEO had to say about bitcoin: BlackRock's Fink Says Clients Have Zero Interest in Crypto

Don’t look to BlackRock Inc. to revive demand for cryptocurrencies. The world’s largest asset manager isn’t buying, because its clients have zero interest.

"I don’t believe any client has sought out crypto exposure," Chief Executive Officer Larry Fink said in an interview on Bloomberg Television Monday. "I’ve not heard from one client who says, ‘I need to be in this.’"

back then, he was in "blockchain not bitcoin" mode. how quickly things change in bitcoin land!

Oh, even only with derivates/futures, this could be hugeeee!

cash-settled futures, unfortunately. they basically operate like an isolated CFD market. since nobody can arbitrage between the spot market and cash-settled markets, the latter can't really lead spot.

by comparison, an open-ended physically backed ETF would be a way bigger deal because the trust would be buying real bitcoins to back the shares. regardless, it's impressive to see the about face from blackrock, and it's an obvious sign of the increasing institutional appetite for bitcoin exposure.

[mk4]

Oh, even only with derivates/futures, this could be hugeeee!

Just to balance the potentially over-bullishness of this thread: though I highly doubt it, since this is going to be a derivatives/futures trade, let's not completely ignore that there's a very small chance that this could be a short position.

[pooya87]

When FOMO occurs it doesn't only occur for the newbie individuals, the scale is sometimes much bigger than them and includes whales, institutional investors, millionaires, ... all the same. With increasing demand for bitcoin among individuals it is not surprising to see all these investment companies, asset managers, etc. are also receiving the  demand from their own customers to add bitcoin for them. And things are just getting warmed up.

[Husires]

I do not think BlackRock will join the market, everyone who wants to join the market will do that first and then announce it.
if this is what happens then we will know about BlackRock’s investment after they bought it.
Otherwise, their investment will be bad because the price will increase.

The accession of these investors will force governments to begin adopting and legislating.

[tinopener]

I do not think BlackRock will join the market, everyone who wants to join the market will do that first and then announce it.

I think this is what happened with $20bn asset manager Ruffer Investment management who have added 2.5% Bitcoin to their balance sheet.

[lifeforcepools]

I don't think it will change the market situation in any way.

[thecodebear]

eh. they are just gonna be buying bitcoin futures so it's not that big of a deal - they aren't actually buying bitcoin. They aren't doing anything more than betting on the short term price of bitcoin for cash, rather than investing in bitcoin itself.

[verita1]

I think the latest news about Blackrock's desire to invest in bitcoins is positive. We are witnessing a great movement, every day more institutions join the party.

It is logical to think that Blackrock needs time to finalize its investment in bitcoin. Some think that this participation is negative because of market manipulation.

Also others wonder like Erik Voorhees about the participation of other institutions outside the USA? I am also curious if there are non-US firms joining bitcoin.

Dan are you aware of institutional examples outside the US yet? All the anecdotes I've seen are US firms so far.

https://twitter.com/ErikVoorhees/status/1351977790392950787?s=19

[bclucho]

I think that is good for bitcoin in the short term, but in the long term not sure about that vultures..... still have my doubts.

[Dutchyyy]

Oh, even only with derivates/futures, this could be hugeeee!

Just to balance the potentially over-bullishness of this thread: though I highly doubt it, since this is going to be a derivatives/futures trade, let's not completely ignore that there's a very small chance that this could be a short position.

Point taken. Especially when I'm using futures mostly to short when they are above the index prices Still, I think the crypto will benefit at least from the more significant media attention.

[bbc.reporter]

Oh, even only with derivates/futures, this could be hugeeee!

Just to balance the potentially over-bullishness of this thread: though I highly doubt it, since this is going to be a derivatives/futures trade, let's not completely ignore that there's a very small chance that this could be a short position.

Agreed! I was also about to say this. It appears that hedge funds and other types of investment and banking groups might have learned on their own overconfidence during the housing bubble of 2007 and 2008. This is their time where they want to be on the correct side of the big short hehehe.