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.
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.
On January 10, BlackRock and nine other spot ETFs secured approval for their spot Bitcoin ETF. 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
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