Key Points
- BlackRock is seeking regulatory approval to incorporate Bitcoin ETFs into its Global Allocation Fund, MALOX.
- The company’s interest in digital assets extends to the Strategic Income Opportunities Fund and the iShares Ethereum Trust.
BlackRock, a major player in global asset management, is currently seeking regulatory approval to introduce spot Bitcoin ETFs into its Global Allocation Fund, also known as MALOX.
The firm has updated its filing with the United States Securities and Exchange Commission (SEC) on March 7, stating its plan to invest in physically-backed Bitcoin ETPs, including its own iShares Bitcoin Trust (IBIT) and those offered by other issuers. This move signifies BlackRock’s intention to allow its fund to invest directly in Bitcoin via national securities exchanges.
The Global Allocation Fund
The BlackRock Global Allocation Fund, established in 1989, seeks to generate investment returns by managing a diversified portfolio consisting of equity, debt, and money market securities from both U.S. and international markets. The fund includes investments in high-profile companies like Microsoft and Apple. As per the latest update, MALOX has managed assets worth $17.8 billion.
This move is part of BlackRock’s wider strategy to engage with digital assets. The company also updated its filing for the Strategic Income Opportunities Fund (BSIIX) on March 4, showing a similar interest in incorporating spot Bitcoin ETFs into its investment strategy. Despite being larger than MALOX with assets under management (AUM) of $36.7 billion, BSIIX has seen modest gains this year.
Impact on the Cryptocurrency Sector
The potential inclusion of Bitcoin ETPs in these funds suggests a major shift in the investment landscape, indicating a growing acceptance of cryptocurrencies among significant institutional investors. Despite BlackRock’s proactive steps, the SEC’s approval of these filings is still pending. However, BlackRock’s initiative is seen as a positive development for the cryptocurrency sector, potentially encouraging other asset managers to consider Bitcoin as a part of their investment portfolios.
In addition to Bitcoin ETPs, BlackRock has launched the iShares Bitcoin Trust, which started trading on January 11. IBIT has seen a significant increase in its Bitcoin holdings, growing over 7,000% to 187,531 BTC by March 7, 2024, equivalent to approximately $12.6 billion. This rapid growth positions IBIT as the fastest-growing spot Bitcoin ETF in the United States.
BlackRock has also shown interest in expanding its cryptocurrency portfolio beyond Bitcoin. In November 2023, the company filed an application for a spot Ether ETF, the iShares Ethereum Trust, with Delaware’s Division of Corporations. The outcome of this application, alongside the broader acceptance of cryptocurrency ETFs by U.S. regulators, is a development closely watched by the financial and cryptocurrency communities.
