BlackRock, a global leader in asset management, is making significant strides toward embracing cryptocurrencies as part of its investment strategy. The firm has recently filed with the United States Securities and Exchange Commission (SEC) to seek approval for the inclusion of spot Bitcoin exchange-traded funds (ETFs) in its Global Allocation Fund, known as MALOX.
TLDR
- BlackRock is seeking SEC approval to include spot Bitcoin exchange-traded funds (ETFs) in its Global Allocation Fund, known as MALOX.
- The firm plans to invest in physically-backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) and those offered by other issuers, through national securities exchanges.
- The BlackRock Global Allocation Fund, established in 1989, aims to generate investment returns through a diversified portfolio of equity, debt, and money market securities from U.S. and international markets, with assets under management of $17.8 billion as of the latest update.
- BlackRock has also updated its filing for the Strategic Income Opportunities Fund (BSIIX), indicating a similar interest in incorporating spot Bitcoin ETFs into its investment strategy.
- The potential inclusion of Bitcoin ETPs in these funds reflects a growing acceptance of cryptocurrencies among major institutional investors
This move demonstrates BlackRock’s growing interest in enabling its funds to invest directly in Bitcoin through nationally regulated securities exchanges.
The updated filing, submitted on March 7, 2024, outlines BlackRock’s intention to invest in physically-backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) and those offered by other issuers.
This development is part of a broader strategy by BlackRock to engage with digital assets, as evidenced by a similar filing update for its Strategic Income Opportunities Fund (BSIIX) on March 4.
The BlackRock Global Allocation Fund, established in 1989, aims to generate competitive returns by managing a diversified portfolio of equity, debt, and money market securities from both U.S. and international markets.
With assets under management totaling $17.8 billion as of the latest update, MALOX’s potential inclusion of Bitcoin ETPs signals a significant shift in the investment landscape.
This move suggests a growing acceptance of cryptocurrencies among major institutional investors, with MacroScope, a crypto analysis platform, predicting an increase in such moves by Wall Street firms in the coming months.
A new filing by BlackRock late this afternoon. As I’ve been saying, you’re going to see a lot of this in coming months from Wall Street firms for their in-house investment funds. As filed today by the BlackRock Global Allocation Fund:
“The Fund may acquire shares in…
— MacroScope (@MacroScope17) March 7, 2024
Despite BlackRock’s proactive approach, the SEC’s approval of these filings remains pending.
The commission, under the leadership of Chairman Gary Gensler, has yet to greenlight BlackRock’s proposals to incorporate Bitcoin ETPs into its investment offerings.
However, BlackRock’s initiative is viewed as a positive development for the cryptocurrency sector, potentially encouraging other asset managers to consider Bitcoin as a component of their investment portfolios.
In addition to exploring Bitcoin ETPs, BlackRock has already launched the iShares Bitcoin Trust (IBIT), which commenced trading on January 11, 2024.
Since its debut, IBIT has experienced remarkable growth, with its Bitcoin holdings increasing by more than 7,000% to 187,531 BTC by March 7, 2024, equivalent to approximately $12.6 billion.
This rapid expansion positions IBIT as the fastest-growing spot Bitcoin ETF in the United States.
BlackRock’s ambitions extend beyond Bitcoin, as evidenced by its November 2023 application for a spot Ether ETF, the iShares Ethereum Trust, filed with Delaware’s Division of Corporations.
The outcome of this application, along with the broader acceptance of cryptocurrency ETFs by U.S. regulators, remains a closely watched development within the financial and cryptocurrency communities.
As BlackRock continues to navigate the regulatory landscape and push for the inclusion of cryptocurrency ETPs in its funds, the firm’s actions are likely to have a significant impact on the future of digital assets within traditional investment portfolios.
Source: https://blockonomi.com/blackrock-seeks-sec-approval-for-bitcoin-etf-inclusion-in-global-allocation-fund/