Blackrock’s Move to Include Bitcoin ETFs in Global Allocation Fund
BlackRock, the world’s largest asset manager, is reinforcing its strategy to integrate Bitcoin into its Global Allocation Fund (MALOX).
As per a filing with the US Securities and Exchange Commission (SEC), the fund is considering acquiring shares in ETFs tied to Bitcoin’s performance, including BlackRock’s Bitcoin ETFs.
The SEC filing indicates that the fund will exclusively invest in Bitcoin ETPs traded on national securities exchanges.
Latest Update: 🇺🇸 BlackRock has submitted a filing to the SEC to procure spot #Bitcoin ETFs for its Global Allocation Fund. pic.twitter.com/qYfQoQ3Cbr
— Bitcoin Magazine (@BitcoinMagazine) March 7, 2024
BlackRock’s Global Allocation Fund aims to provide investors with returns similar to global stocks while mitigating risks. Despite a slow start this year, BlackRock believes that incorporating Bitcoin ETFs will enhance performance amidst the recent Bitcoin enthusiasm.
The fund, established in 1989, presently manages approximately $17.8 billion in assets.
Blackrock’s Strong Embrace of Cryptocurrency
This recent move marks the second application to the US securities regulator as BlackRock looks to escalate its investment in Bitcoin and related assets.
Last month, the asset manager proposed an update to its Strategic Income Opportunities portfolio to include Bitcoin ETFs. The prospectus also warns investors about the potential risks, including the possibility of losing their investment entirely.
Although spot Bitcoin ETFs have been approved, the SEC Chair, Gary Gensler, maintains a cautious stance on Bitcoin and the crypto market.
Gensler has likened Bitcoin to a rollercoaster, labeling it as a highly speculative asset.
🚨BREAKING: SEC Chair Gary Gensler states: “ #BITCOIN is a highly speculative asset class. ” pic.twitter.com/M32SDaZPlO
— JackTheRippler ©️ (@RippleXrpie) March 7, 2024
While BlackRock and Fidelity have sought the SEC’s approval for an Ethereum ETF, the regulator has postponed its decision on this matter. The final determination is anticipated by May 23.
The crypto community eagerly awaits this decision, with some speculating on potential rejection. It took nearly ten years for the SEC to approve a spot Bitcoin ETF.
Blackrock’s Leading Position in the Spot Bitcoin ETF Sector
BlackRock launched the iShares Bitcoin Trust (IBIT) earlier this year, joining nine other spot Bitcoin ETFs. These ETFs have since become some of the top-performing funds in history.
BlackRock has been actively accumulating Bitcoin for its IBIT ETF, witnessing a significant increase since its inception, reflecting the growing interest in digital assets.
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