BlackRock requests SEC endorsement to include Bitcoin ETF in Global Allocation Fund
Global asset management leader, BlackRock, is currently seeking regulatory approval to include spot Bitcoin exchange-traded funds (ETFs) in its Global Allocation Fund, known as MALOX. The firm recently updated its filing with the United States Securities and Exchange Commission (SEC), stating its intention to invest in physically-backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) as well as those offered by other issuers. This move reveals BlackRock’s interest in allowing its fund to directly invest in Bitcoin through national securities exchanges.
Established in 1989, the BlackRock Global Allocation Fund aims to generate investment returns by managing a diversified portfolio consisting of equity, debt, and money market securities from both U.S. and international markets. Notable companies such as Microsoft and Apple are included in the fund’s investments. As of the latest update, MALOX has managed assets totaling $17.8 billion.
This development is part of BlackRock’s broader strategy to engage with digital assets. The firm also updated its filing for the Strategic Income Opportunities Fund (BSIIX), indicating a similar interest in incorporating spot Bitcoin ETFs into its investment strategy. BSIIX, with assets under management (AUM) of $36.7 billion, surpasses MALOX in size but has experienced modest gains this year.
The potential inclusion of Bitcoin ETPs in these funds signifies a significant shift in the investment landscape, suggesting a growing acceptance of cryptocurrencies among major institutional investors. Crypto analysis platform, MacroScope, commented on the filing, noting the expected increase in such moves by Wall Street firms in the coming months, indicating a potential rise in demand and adoption of cryptocurrencies.
While BlackRock has taken proactive steps, the approval of these filings by the SEC is still pending. The commission, led by Chairman Gary Gensler, has yet to give the green light to BlackRock’s proposals to incorporate Bitcoin ETPs into its investment offerings. Nevertheless, BlackRock’s initiative is seen as a positive development for the cryptocurrency sector, potentially encouraging other asset managers to consider Bitcoin as part of their investment portfolios.
In addition to exploring Bitcoin ETPs, BlackRock has launched the iShares Bitcoin Trust, which began trading on January 11. Since its debut, IBIT has experienced significant growth in its Bitcoin holdings, increasing by over 7,000% to 187,531 BTC by March 7, 2024, equivalent to approximately $12.6 billion. This rapid growth establishes IBIT as the fastest-growing spot Bitcoin ETF in the United States.
Furthermore, BlackRock has 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, along with the broader acceptance of cryptocurrency ETFs by U.S. regulators, is closely monitored within the financial and cryptocurrency communities.
