Blackrock enters Bitcoin with 2 new funds – digital currencies

2020 is considered by many to be the year in which Bitcoin became a legitimate currency and commodity. True, unlike the dollar or the shekel or any other currency, there are no mountains of gold sitting in the safes of central banks. On the other hand, there is trust on the part of users – and now investors as well – due to the closed nature of these systems, which allow for high-level validation that is not under the control of any specific factor. Despite this, currently the currency is not used to make trades, but mainly works like investing in gold, i.e. buying and sitting on it. Some even think it’s a bubble.

There are quite a few things that have happened that confirm this propaganda. The currencies based on blockchain technology have experienced quite a few ups and downs over the years, but last year we saw the entry of large investors into Bitcoin in particular. This also led to the price saying. From April 2020 to January this year, the price jumped more than 7 times, from a price of $ 5,355 per bit, to $ 40,519 for Bitcoin as of January 9th.

As in the case of gold – which last year crossed the $ 2,000 a ounce price where analysts have already watched the commodity reach $ 3,000 – since the peak of the month, when they also talked about reaching the price in the 6-digit dialing areas, bitcoin has already lost more than 12%, and is currently sitting at a price of $ 35,004 per bit. Still significantly higher than last year and yet. By the way, in the daily low it has already reached $ 32,000 per bit.

Regardless, it is an industry that rolls in tens of billions with dedicated computerized systems and expensive mining processes, which also lead companies from the sector, which is mostly focused in China, to the capital markets. But as we wrote here last week, investing in digital currencies is, as the saying goes, not for the faint of heart. Certainly not at the level of volatility that this currency is experiencing.

BlackRock is launching 2 new funds to invest in Bitcoin
But this week another checkpoint was broken. BlackRock, the largest investment fund in the world, which currently manages $ 8.7 trillion, has announced the opening of 2 funds that allow investment in futures contracts on Bitcoin.

On Wednesday, it appeared in SEC reports on the establishment of two funds: the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund; Or in English: BlackRock Strategic Income Opportunities, BlackRock Global Allocation Fund Inc.

In the past decade, Balarok executives, including founder and CEO Larry Fink, have said they intend to look at digital currency investments, and as in the case of ESG investments, they seem to be behind their word. And its entry is very significant and not just symbolic. Like Warren Buffett, Balarok is a right-wing marker market.

“The move shows these properties are starting to get respectable,” Nick Carter, a partner at Castle Island Ventures, told Bloomberg. “This is certainly further evidence of the thesis of the process of the establishment of Bitcoin, which is the reason for its bullish rally,” he added.