Asset management giant BlackRock submitted documents to the SEC today outlining its potential move into Bitcoin futures trading. The documents show that it will only be investing in cash-settled Bitcoin futures on exchanges registered with the CFTC.

“Certain Funds may engage in futures contracts based on bitcoin,” the document states, adding, “The only bitcoin futures in which the Funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”

BlackRock is the largest asset manager in the world, with more than $7.8 trillion assets under management. In July 2018, reports claimed that BlackRock had set up a working group to consider whether it should move into the Bitcoin futures market.

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The documents show that BlackRock’s fund may start using derivatives, specifying that this includes “currencies (including bitcoin).” It acknowledges that regulatory changes could affect the prices of the futures, which could negatively impact the fund.

It also acknowledges that there is less liquidity in the Bitcoin markets, particularly with Bitcoin futures trading.

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