BlackRock, the asset management powerhouse, seeks SEC endorsement to integrate spot Bitcoin exchange-traded funds into its Global Allocation Fund, MALOX. The company’s recent SEC filing on March 7 reveals plans to invest in physically-backed Bitcoin exchange-traded products (ETPs). This includes its iShares Bitcoin Trust (IBIT) and similar products from other issuers. BlackRock aims to allow direct Bitcoin investment via national securities exchanges.
Founded in 1989, the BlackRock Global Allocation Fund targets investment returns through a diversified mix of equity, debt, and money market securities globally. With assets totaling $17.8 billion, the fund includes investments in leading companies like Microsoft and Apple. This move signifies BlackRock’s broader strategy to delve into digital assets. Similarly, the Strategic Income Opportunities Fund (BSIIX) showed interest in Bitcoin ETFs, managing $36.7 billion in assets but with modest gains this year.
Institutional Adoption and Regulatory Hurdles
The inclusion of Bitcoin ETPs marks a shift in investment trends, highlighting increased cryptocurrency acceptance among institutional investors. MacroScope expects a rise in such initiatives from Wall Street, potentially boosting demand and adoption rates. However, the SEC, under Chairman Gary Gensler, has yet to approve BlackRock’s filings. The firm’s proactive stance is seen as a positive sign for the crypto sector, encouraging other asset managers to incorporate Bitcoin into their portfolios.
Beyond its Bitcoin ETP ventures, BlackRock introduced the iShares Bitcoin Trust, which started trading on January 11. As of March 7, 2024, IBIT’s Bitcoin holdings surged over 7,000% to 187,531 BTC, roughly $12.6 billion, making it the fastest-growing spot Bitcoin ETF in the U.S. BlackRock also seeks to broaden its crypto portfolio, filing for a spot Ether ETF, the iShares Ethereum Trust, in November 2023. The financial and crypto communities keenly await the outcome and broader U.S. regulatory acceptance of cryptocurrency ETFs.