BlackRock Moves to Add Bitcoin Futures to 2 Funds 

The Boston Federal Reserve Bank is conducting research with MIT into a central bank digital currency and the ECB is "very seriously" looking at the creation of the digital euro, according to its president, Christine Lagarde.

On the flip side, Janet Yellen, the former chair of the Federal Reserve and President Joe Biden's nominee for Treasury Secretary said in her confirmation hearing earlier this week that she is particularly concerned about cryptocurrencies which she believes are often used for "illicit "financing."

The BlackRock filings explain that "the cash market in bitcoin has been the target of fraud and manipulation, which could affect the pricing of Bitcoin futures contracts" and that the "exchanges where bitcoin is traded …  have experienced technical and operational issues, making bitcoin prices unavailable at times."

The Bitwise 10 Crypto Index Fund (BITW), which more than quintupled in price in its first week of trading in December, from $25 to nearly $140, is now trading near $52 and the Grayscale Bitcoin Trust, reached a $45 high in early January is currently trading 30% lower.

The growing popularity of Bitcoin may be contributing to its volatility. JPMorgan Chase & Co. cross-asset strategists John Normand and Federico Manicardi note in report published Thursday that Bitcoin is the "least reliable hedge during periods of acute market stress," according to a Bloomberg report.

"The mainstreaming of crypto ownership" increases their correlations with cyclical cyclical assets, potentially converting them from insurance to leverage," Normand and Manicardi explained.  

See: 11 Reasons Advisors Can No Longer Ignore Bitcoin