BlackRock Plans to Invest in Bitcoin ETFs for Global Allocation Fund, MALOX
Summary:
Global asset management giant BlackRock plans to add physically-backed Bitcoin ETFs to its Global Allocation Fund, MALOX, and potentially its Strategic Income Opportunities Fund. The recently updated SEC filing stipulates that MALOX may invest in BlackRock's own iShares Bitcoin Trust (IBIT), and ETFs from other issuers. Since its debut trading on January 11, IBIT holdings have increased more than 7,000%, with its BTC assets valued at $12.6 billion. Furthermore, the firm is pushing for the approval of a spot Ether (ETH) ETF with U.S. regulators.
BlackRock, a leading global asset manager, has plans in its portfolio for the acquisition of spot Bitcoin (BTC) exchange-traded funds (ETF) to be included in its Global Allocation Fund (MALOX). On March 7, an amended document with the United States Securities and Exchange Commission (SEC) clarified that BlackRock is eyeing the addition of physically-backed Bitcoin exchange-traded products (ETP), colloquially spot Bitcoin ETFs, in its MALOX portfolio. The revision mentioned the possibility of MALOX investing in BlackRock's very own spot Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), as well as those issued by alternative providers. It was highlighted that the fund could acquire shares in ETPs that are designed to reflect Bitcoin's performance in the market, specifically those ETPs that hold Bitcoin directly – and are listed and traded on national securities exchanges. Incepted in 1989, the BlackRock Global Allocation Fund aims to provide returns on investment through a carefully managed policy, engaging in U.S. and international equity, debt, money market securities, and companies like Microsoft, Apple and others. As of the update on March 7, MALOX stands with over $17.8 billion in managed assets. Spot Bitcoin ETFs are not limited to the MALOX fund; BlackRock expressed similar investment interest for its Strategic Income Opportunities Fund (BSIIX) in an updated filing to the SEC on March 4. BlackRock's own spot Bitcoin ETF, iShares Bitcoin Trust, commenced trading on Jan. 11, parallel to nine other spot Bitcoin ETFs across the U.S. The IBIT has become the fastest-growing spot Bitcoin ETF, with its BTC assets swelling more than 7,000%, from 2,621 BTC on its launch to 187,531 BTC by March 7, 2024, with the current value of IBIT’s holdings at $12.6 billion. BlackRock has also shown active interest in a spot Ether (ETH) ETF with regulatory authorities in the U.S., with a Form S-1 application for an iShares Ethereum Trust lodged with Delaware’s Division of Corporations in November 2023. The question of whether the U.S. will approve a spot ETH ETF in 2024 draws differing opinions in the industry. It took over a decade for the SEC to greenlight a spot Bitcoin ETF in the U.S. This news comes in line with industry observations by Jameson Lopp on the uncertain launch of ETH ETFs and BTC price trends.
Published At
3/8/2024 11:05:56 AM
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