Bitcoin Receives BlackRock’s Attention

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⭐️Today's selection:

• ⚫️BlackRock Adds Bitcoin To Global Allocation Fund
• 💸Celsius Owns Its Customers' Funds
• 🧩Quiz Thursday
• 👌Selected Meme of The Day
• 📰Bite-Sized News

BLACKROCK ADDS BTC TO GLOBAL ALLOCATION FUND

Investment giant BlackRock added bitcoin to the list of assets for its distribution fund (Global Allocation Fund). That's big.

Such funds use an investment strategy that consists of deposits in different assets. This allows risk diversification.

Global Allocation Fund is created for private investors around the world. The product consists of stocks, debentures, short-term bonds and other assets (in varying percentages).

Allocation of funds makes the investment process more accessible and more reliable. After all, ordinary users don't need to compile a portfolio, or calculate the risks of each asset - it's all done for them.

Now BlackRock will add bitcoin to this structure. And more precisely - BTC futures, which are listed on exchanges and passed the registration with the regulators.

BlackRock was one of the first companies to add bitcoin to its distribution package. This is positive news for cryptocurrency adoption, and a rather bullish signal.

By the way, just 0.32% of Black Rock's investment fund is enough to buy all the BTC available on centralized exchanges.

This doesn't mean that this is exactly what's going to happen. However...

This event shows that the foundations for managing such assets are being built right now. It seems like there are no reasons to panic or fear about the future of crypto.

The company stresses that "under normal market conditions," the fund will invest 70% of its resources in low-risk assets (government and corporate securities).

Now Global Allocation Fund manages about $15 billion in client funds.

TL;DR: BlackRock, the world's largest asset manager, added Bitcoin to their Global Allocation Fund, which currently manages about $15 billion in client funds.

CELSIUS NETWORK OWNS ITS CUSTOMERS' FUNDS

Bankruptcy Judge Martin Glenn reported that Celsius Network owns its customers' funds.

This means that the cryptocurrencies stored in the company's interest-bearing accounts are property of the company.

This implies that users will not be able to receive a refund until all other company's debts have been paid.

As Glenn said, Celsius' terms of service clearly state that the cryptocurrency lender gets ownership of customer deposits into its interest-bearing accounts.

That is, those who used the Earn program will be treated as unsecured creditors and will be the last ones to get their money back.

"The ruling does not mean that users will get literally nothing. Such a court verdict will not stop further appeals of ownership of cryptocurrency deposits," the judge said.

Twelve U.S. states and the District of Columbia opposed the company's ownership of crypto assets. They said people likely didn't understand the terms of service.

People can sue the firm for violations of law and fraud, and regulators will prove that the contracts can't be enforced because they violate laws.

The ruling allows the sale of about $18 million in stablecoins that were held in the accounts.

Previously, back in December, the judge said that only a few people are eligible for refunds.

It would only apply to those who had interest-free accounts and whose deposits were not commingled with Celsius assets.

TL;DR: Celsius Network owns its customers' cryptocurrency deposits, according to a bankruptcy judge. This further complicates and diminishes the hopes of Celsius' customers to receive what the company owes to them.

QUIZ THURSDAY

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

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