BlackRock’s Global Allocation Fund to Invest in Spot Bitcoin ETFs

BlackRock, the world’s leading asset manager, announced on March 7 its decision to include spot Bitcoin exchange-traded funds (ETFs) in its popular Global Allocation Fund (MALOX) for retail investors.

Its recent filing with the U.S. Securities and Exchange Commission (SEC) signaled BlackRock’s strategic shift toward cryptocurrency investments.

BlackRock Global Allocation Fund Portfolio

The asset manager’s intentions include adding physically-backed Bitcoin exchange-traded products (ETPs) to its MALOX fund.

This means the fund may acquire shares in ETPs that reflect Bitcoin’s performance by directly holding the cryptocurrency, including those sponsored by a BlackRock affiliate.

This indicates that MALOX has the potential to invest in Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), launched in January 2024.

This action mirrors a recent update to its Strategic Income Opportunities Fund (BSIIX), where BlackRock detailed its intention to incorporate spot Bitcoin ETFs into its range of products.

Launched in February 1989, the BlackRock Global Allocation Fund assists investors in managing a portfolio of U.S. and foreign stocks, bonds, and cash equivalents. MALOX is among the 500 funds managed by BlackRock.

The BlackRock Global Allocation Fund’s holdings exceed $17 billion, with a market capitalization of approximately $497.4 billion. Nvidia Corp, Amazon Com Inc, and Microsoft are among its top equity holders.

Fastest-Growing Bitcoin ETF

On January 10, BlackRock and nine other spot ETFs secured approval for their spot Bitcoin ETFs. Following this, the iShares Bitcoin Trust (IBIT) experienced major growth.

BlackRock has acquired 6,266 Bitcoin daily since IBIT’s launch, amassing 184,910 BTC valued at $12.9 billion as of March 7, 2024.

On February 27, BlackRock’s Bitcoin ETF surpassed $1 billion in trading volume. Additionally, the iShares Bitcoin ETF (IBIT) achieved a milestone in the ETF industry by reaching $10 billion in assets under management (AUM) on March 1.

MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are bananas numbers for ETfs under 2mo old. $IBIT, $FBTC, $BITB, $ARKB all w record days. pic.twitter.com/rIdbhoYifV

— Eric Balchunas (@EricBalchunas) March 5, 2024

In just seven weeks after its January 11 launch, it became the fastest ETF to reach this milestone. BlackRock’s success with Bitcoin ETFs has led the company to pursue approval for a spot Ethereum ETF in the U.S.

SEC just delayed @InvescoUS & @galaxyhq's #Ethereum ETF. 100% expected and more delays will continue to happen in coming months.

The only date that matters for spot #ethereum ETFs at this time is May 23rd. Which is @vaneck_us's final deadline date pic.twitter.com/gkVZL2QuPK

— James Seyffart (@JSeyff) February 6, 2024

Financial experts are cautious about the SEC’s approval timeline for a spot Ethereum ETF due to the regulator’s history of delaying applications.

Bloomberg’s ETF analyst James Seyffart has predicted that approval for an Ethereum ETF might not come until May 23, the final deadline for applications submitted by VanEck and Cathie Wood’s Ark Invest.