BlackRock Will Invest Into Bitcoin ETFs
08 Mar, 2024 ● Crypto News
BlackRock, a major global asset manager, is preparing to invest in spot Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX).
According to a filing update with the United States Securities and Exchange Commission on March 7, BlackRock intends to add physically backed Bitcoin exchange-traded products (ETPs), commonly known as spot Bitcoin ETFs, to MALOX.
The updated filing indicates that MALOX may acquire BlackRock's own spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), as well as ETFs from other issuers.
The fund is permitted to invest in shares of ETPs that aim to mirror the performance of Bitcoin's price by holding bitcoin directly, including those sponsored by BlackRock affiliates.
However, the fund will exclusively invest in Bitcoin ETPs that are listed and traded on national securities exchanges, as stated in the filing.
Established in 1989, the BlackRock Global Allocation Fund pursues investment returns through a managed investment strategy utilizing U.S. and foreign equities, debt, and money market securities, featuring investments in companies like Microsoft and Apple.
As of March 7, MALOX managed assets worth $17.8 billion.
MALOX is not the sole BlackRock fund interested in holding spot Bitcoin ETFs.
Just a few days prior to the update on March 4, BlackRock submitted a similar filing for its Strategic Income Opportunities Fund (BSIIX).
BlackRock's spot Bitcoin ETF, the iShares Bitcoin Trust, began trading on Jan. 11, alongside nine other spot Bitcoin ETFs in the U.S.
Since its debut, IBIT has experienced remarkable growth, increasing its BTC holdings by over 7,000%, from 2,621 BTC on Jan. 11 to 187,531 BTC as of March 7, 2024, valued at $12.6 billion.
Aside from the spot Bitcoin ETF, BlackRock has actively pursued approval for 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.
The potential approval of a spot ETH ETF in 2024 has sparked debates among industry analysts and observers, considering it took over a decade for the SEC to endorse a spot ETF for Bitcoin in the U.S.
Sources:
https://cointelegraph.com/news/blackrock-buy-spot-bitcoin-etf-global-allocation-fund
