BlackRock has shown interest in investing in a spot Bitcoin exchange-traded fund (ETF) as part of its global allocation fund.
The BlackRock Global Allocation Fund would purchase the firm’s spot Bitcoin ETFs, as well as those offered by other issuers.
One of the world’s largest asset managers, BlackRock, intended to invest in spot Bitcoin ETFs for its Global Allocation Fund (MALOX).
An update to a filing with the U.S. Securities and Exchange Commission (SEC) on March 7 revealed BlackRock’s intention to invest in physically-backed Bitcoin ETPs for MALOX.
The updated filing specified that MALOX might purchase iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF from BlackRock, as well as Bitcoin ETFs from other issuers, stating:
“The fund may acquire shares in ETPs that seek to reflect generally the performance of the price of Bitcoin by directly holding bitcoin — ‘Bitcoin ETPs’ — including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
According to the filing, MALOX would only invest in Bitcoin ETFs listed and traded on national securities exchanges.
Not only MALOX but also other BlackRock funds may invest in spot Bitcoin ETFs, according to the latest SEC filings.
Days before the updated MALOX filing, BlackRock submitted a similar update for the Strategic Income Opportunities Fund (BSIIX) on March 4, 2023
The iShares Bitcoin Trust, a spot Bitcoin ETF from BlackRock, began trading on Jan. 11, 2023, alongside nine other spot Bitcoin ETFs launched on the same day.
From its launch in January 2023 to March 7, 2024, IBIT’s Bitcoin holdings increased by more than 7,000%, from 2,621 BTC to 187,531 BTC.
As of the date of this writing, IBIT’s Bitcoin holdings were valued at approximately $12.6 billion.
In addition to the iShares Bitcoin Trust, BlackRock has actively sought approval from U.S. regulators for a spot Ether ETF.
In November 2023, BlackRock filed a Form S-1 for the iShares Ethereum Trust with Delaware’s Division of Corporations.
However, analysts and observers have expressed a range of opinions on whether U.S. financial regulators would approve a spot Ether ETF in 2024.
The Securities and Exchange Commission (SEC) took more than 10 years to approve the first spot Bitcoin ETF in the United States.
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