Leading asset management company BlackRock is currently applying for regulatory approval to add spot Bitcoin exchange-traded funds (ETFs) to its Global Allocation Fund, or MALOX.
The company stated in an amended filing with the U.S. Securities and Exchange Commission (SEC) on March 7 that it plans to invest in exchange-traded products (ETPs) that are physically backed by Bitcoin, such as its own iShares Bitcoin Trust (IBIT) and those that other issuers provide.
This action suggests that BlackRock wants to allow its fund to make direct Bitcoin investments via national securities exchanges. Established in 1989, the BlackRock Global Allocation Fund aims to produce investment returns by managing a diversified portfolio that includes debt, equities, and money market securities from both domestic and foreign markets.
The fund has assets in several well-known corporations, including Apple and Microsoft. According to the most recent report, MALOX managed $17.8 billion worth of assets.
This innovation is part of BlackRock’s larger plan to interact with digital assets. On March 4, the company changed its application for the Strategic Income Opportunities Fund (BSIIX), expressing a similar desire to include spot Bitcoin ETFs in its investment plan.
With $36.7 billion in assets under management (AUM), BSIIX is larger than MALOX, however it has only made slight increases so far this year. The possibility of Bitcoin ETPs being included in these funds indicates a dramatic change in the investment environment and suggests that large institutional investors are beginning to adopt cryptocurrencies.
A platform for cryptocurrency analysis called MacroScope commented on the filing, pointing out that Wall Street corporations are likely to take more of these actions in the coming months, suggesting that demand for and adoption of cryptocurrencies may expand.
BlackRock took preventative measures, but the SEC has not yet approved these filings. Chairman Gary Gensler’s commission has not yet approved BlackRock’s requests to include Bitcoin ETPs in its investment offerings.
However, BlackRock’s move is a step in the right direction for the cryptocurrency industry, possibly inspiring other asset managers to include Bitcoin in their investment holdings.
Besides investigating Bitcoin exchange-traded funds, BlackRock introduced the iShares Bitcoin Trust, which went live on January 11. IBIT’s holdings of Bitcoin have increased dramatically since its launch, rising more than 7,000% to 187,531 BTC on March 7, 2024, or almost $12.6 billion.
IBIT is now the fastest-growing spot Bitcoin ETF in the U.S. due to its quick expansion. Moreover, BlackRock has expressed interest in adding cryptocurrencies to its portfolio beyond Bitcoin.
The company applied to Delaware’s Division of Corporations in November 2023 for the iShares Ethereum Trust, a spot Ether ETF. Within the financial and cryptocurrency worlds, the outcome of this application and the wider adoption of bitcoin ETFs by U.S. regulators continue to be carefully followed developments.
