BlackRock Global Allocation Fund to Invest in Own and Other Issuers’ Spot Bitcoin ETFs
Crypto News – BlackRock, a titan in the asset management industry, is set to diversify its Global Allocation Fund (MALOX) by including spot Bitcoin exchange-traded funds (ETFs) in its portfolio.
In a recent filing with the United States Securities and Exchange Commission dated March 7, BlackRock expressed its intention to incorporate physically backed Bitcoin exchange-traded products (ETPs), commonly referred to as spot Bitcoin ETFs, within MALOX.
The updated filing specifies that MALOX may acquire shares in various Bitcoin ETPs, including BlackRock’s own spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), as well as ETFs offered by other issuers. It states:
“The fund may acquire shares in ETPs that seek to reflect generally the performance of the price of Bitcoin by directly holding bitcoin — ‘Bitcoin ETPs’ — including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
Furthermore, the filing underscores that MALOX will exclusively invest in Bitcoin ETPs listed and traded on national securities exchanges.
Established in 1989, the BlackRock Global Allocation Fund pursues investment returns through a comprehensive investment strategy encompassing U.S. and foreign equity, debt, and money market securities, featuring prominent companies such as Microsoft and Apple among its holdings. As of March 7, MALOX managed assets valued at $17.8 billion.
Notably, MALOX is not the sole BlackRock fund slated to incorporate spot Bitcoin ETFs. The updated SEC filing follows a similar filing update for BlackRock’s Strategic Income Opportunities Fund (BSIIX) on March 4.
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust, made its trading debut on January 11, alongside nine other spot Bitcoin ETFs in the United States. IBIT has rapidly emerged as the fastest-growing spot Bitcoin ETF, witnessing a staggering increase in BTC holdings by over 7,000%, from 2,621 BTC on January 11 to 187,531 BTC as of March 7, 2024. As of the current writing, IBIT’s Bitcoin holdings are valued at $12.6 billion.
In addition to its endeavors in the spot Bitcoin ETF realm, BlackRock has actively advocated for the introduction of a spot Ether ETF with U.S. regulators. In November 2023, BlackRock filed a Form S-1 application for its iShares Ethereum Trust with Delaware’s Division of Corporations.
Industry analysts and observers have been engaged in debates regarding whether U.S. financial regulators will greenlight the launch of a spot ETH ETF in 2024. Notably, the approval process for a spot ETF in the United States took over a decade for Bitcoin.
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