BlackRock Inc has increased a range of Bitcoin futures contracts since Q1 2021, according to a recent filing with the US Securities and Exchange Commission (SEC).
According to the report, the Blackrock Global allocation fund had 54 Bitcoin CME futures contracts that expired on August 27 and generated $369,137 in revenue for the New York-based investment firm.
On July 31, the BlackRock Global Allocation fund purchased 54 Bitcoin futures contracts from the CME (Chicago Mercantile Exchange). The contracts were valued at $10.8 million when they expired on August 27 and had appreciated by $369,137.
At the time of writing, the profits from Bitcoin futures accounted for roughly 0.00138 percent of the Blackrock Global allocation fund, or 8.91 BTC.
With over $9.5 trillion in total assets under management, BlackRock is the world’s largest asset manager.
In January, Blackrock filed prospectus paperwork with the Securities and Exchange Commission, indicating its interest in investing in Bitcoin futures. Two specific funds (the BlackRock Strategic Income Opportunities Portfolio and the BlackRock Global Allocation fund) were trading Bitcoin futures in the papers.
Since January, BlackRock has earned $360,000 trading Bitcoin futures. According to the SEC filing, BlackRock’s Global Allocation Fund had 37 Bitcoin CME futures contracts that expired at the end of March.
Bitcoin Futures Demand Drops
This time, BlackRock’s profit from Bitcoin futures coincides with a drop in demand for similar contracts, which is a blow for Bitcoin.
According to a recent investor note from JP Morgan, large investors are now searching for Ethereum futures rather than Bitcoin futures.
JP Morgan ascribed the situation to institutional investors’ lack of interest in bitcoin futures.
According to JP Morgan’s investor note, institutional investors, such as hedge funds with a large sum of money to play with, are significantly more interested in Ethereum futures than in Bitcoin futures.
According to the letter, bitcoin futures on the Chicago Mercantile Exchange (CME) traded below the price of Bitcoin this month.
Futures tend to trade higher than the real cryptocurrency when demand for Bitcoin is high. However, according to CME statistics, this was not the case in September.
Instead, since August, investors have been monitoring Ethereum futures, with the 21-day average Ethereum futures premium rising 1% higher than the cryptocurrency’s price, according to JP Morgan.
Despite the high level of demand in the future, both cryptocurrencies are in trouble. The price of Bitcoin is present $42,229.95, while the price of Ethereum is $2,910.23.