Global allocation fund of BlackRock seeks to acquire spot Bitcoin ETFs

BlackRock, a renowned asset management firm, has announced its intention to acquire spot Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX). In an update to its filing with the United States Securities and Exchange Commission on March 7, BlackRock expressed its desire to include physically backed Bitcoin exchange-traded products (ETPs), also known as spot Bitcoin ETFs, as part of MALOX. The updated filing specifies that MALOX will only invest in Bitcoin ETPs that are listed and traded on national securities exchanges.
Established in 1989, the BlackRock Global Allocation Fund aims to provide investment returns through a fully managed investment policy that utilizes U.S. and foreign equity, debt, and money market securities. Notably, the fund includes investments in prominent companies such as Microsoft and Apple. As of March 7, MALOX had amassed $17.8 billion in assets under management.
MALOX is not the only BlackRock fund seeking to hold spot Bitcoin ETFs. Just a few days prior to the filing update for MALOX, BlackRock submitted a similar update for its Strategic Income Opportunities Fund (BSIIX) on March 4.
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), commenced trading on January 11, along with nine other spot Bitcoin ETFs in the United States. IBIT has experienced significant growth, increasing its BTC holdings by over 7,000% from 2,621 BTC on January 11 to 187,531 BTC as of March 7, 2024. At present, IBIT’s Bitcoin holdings are valued at $12.6 billion.
In addition to the spot Bitcoin ETF, BlackRock has actively pursued the approval of a spot Ether (ETH) ETF from U.S. regulators. In November 2023, BlackRock filed a Form S-1 application for its iShares Ethereum Trust with Delaware’s Division of Corporations. The possibility of a spot ETH ETF being approved in 2024 has been a topic of discussion among industry analysts and observers, drawing comparisons to the lengthy process it took for the SEC to support a spot Bitcoin ETF in the United States.
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