Asset management giant BlackRock plans to include spot market exposure to Bitcoin (BTC) exchange-traded fund (ETF) in its proposed internal investment fund.
BlackRock recently released a prospectus to the US Securities and Exchange Commission (SEC) in connection with its proposed ‘Strategic Income Opportunities Portfolio’, a fund that will invest in high yield securities, international securities, emerging market debt and mortgages.
The prospectus indicates that the proposed fund may also invest in other market sectors, such as BlackRock’s recently approved BTC ETF, the iShares Bitcoin Trust (IBIT).
BlackRock wrote extensively about the risks associated with Bitcoin exposure in the document submitted to the SEC.
“The opaque nature of the digital asset market poses challenges for market participants, regulators and auditors in asset verification and leads to an increased risk of manipulation and fraud, including the possibility of Ponzi schemes, bucket shops and pump-and-switch -dump schemes. Digital assets have been used in the past to facilitate illegal activities.
If a digital asset were used to facilitate illegal activities, companies that facilitate transactions in such digital assets could be at greater risk of potential criminal or civil liability or lawsuits, or of having banking or other services terminated, and such digital assets can be deleted. of digital asset platforms.
Any of the above events could negatively impact the price of Bitcoin, the attractiveness of the Bitcoin blockchain network, and Bitcoin-related investments.
Last week, IBIT became one of only 52 of 3,400 ETFs to surpass $10 billion in assets under management (AUM), according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
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