BlackRock, a prominent global asset management firm, is currently in the process of seeking regulatory approval to integrate spot Bitcoin exchange-traded funds (ETFs) into its Global Allocation Fund, known as MALOX.
The firm recently updated its filing with the United States Securities and Exchange Commission (SEC) on March 7, outlining its plans to invest in physically-backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) and those provided by other issuers. This move underscores 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 comprising equity, debt, and money market securities from both U.S. and international markets. Noteworthy companies such as Microsoft and Apple are among the fund’s investments. As of the latest update, MALOX has managed assets totaling $17.8 billion.
This initiative 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) on March 4, signaling a similar interest in integrating spot Bitcoin ETFs into its investment strategy. Although BSIIX boasts assets under management (AUM) of $36.7 billion, larger than MALOX, its gains this year have been moderate.
The potential inclusion of Bitcoin ETPs in these funds marks a significant shift in the investment landscape, suggesting an increasing acceptance of cryptocurrencies among major institutional investors. MacroScope, a crypto analysis platform, commented on the filing, anticipating more such moves by Wall Street firms in the coming months, indicating a potential surge in demand and adoption of cryptocurrencies.
Despite BlackRock’s proactive approach, the SEC’s approval of these filings is pending. The commission, led by Chairman Gary Gensler, has yet to approve BlackRock’s proposals to integrate Bitcoin ETPs into its investment offerings. Nevertheless, BlackRock’s initiative is seen as a positive step for the cryptocurrency sector, potentially prompting other asset managers to consider Bitcoin as part of their investment strategies.
In addition to exploring Bitcoin ETPs, BlackRock has launched the iShares Bitcoin Trust, which began trading on January 11. Since its inception, IBIT has witnessed a remarkable increase in its Bitcoin holdings, surging more than 7,000% to 187,531 BTC by March 7, 2024, valued at approximately $12.6 billion. This rapid growth positions IBIT as the fastest-growing spot Bitcoin ETF in the United States.
Furthermore, BlackRock has expressed interest in diversifying 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, remains a closely monitored development within the financial and cryptocurrency communities.