BlackRock, the renowned asset management firm, made a significant announcement on March 7, revealing its plans to incorporate spot Bitcoin exchange-traded funds (ETFs) into its widely popular Global Allocation Fund (MALOX), catering to retail investors. This strategic move, as indicated in its recent filing with the U.S. Securities and Exchange Commission (SEC), showcases BlackRock’s pivot towards cryptocurrency investments.
BlackRock’s Global Allocation Fund Portfolio is set to include physically-backed Bitcoin exchange-traded products (ETPs) within its MALOX fund. This entails the fund’s potential acquisition of shares in ETPs that directly mirror Bitcoin’s performance by holding the cryptocurrency, including those backed by a BlackRock affiliate. Notably, MALOX may venture into investing in Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT), which was launched in January 2024.
This development aligns with BlackRock’s update to its Strategic Income Opportunities Fund (BSIIX), where the firm outlined its strategy to integrate spot Bitcoin ETFs into its product offerings. Established in February 1989, the BlackRock Global Allocation Fund aids investors in managing a diverse portfolio comprising U.S. and foreign stocks, bonds, and cash equivalents, among others. MALOX stands among the 500 funds managed by BlackRock, boasting holdings exceeding $17 billion and a market capitalization of around $497.4 billion, with top equity holdings in companies like Nvidia Corp, Amazon Com Inc, and Microsoft.
The iShares Bitcoin Trust (IBIT), along with nine other spot ETFs, received approval for their spot Bitcoin ETFs on January 10. Since IBIT’s launch, BlackRock has been acquiring 6,266 Bitcoin daily, accumulating a total of 184,910 BTC valued at $12.9 billion by March 7, 2024. Notably, on February 27, BlackRock’s Bitcoin ETF surpassed $1 billion in trading volume, with IBIT crossing the $10 billion assets under management (AUM) mark on March 1, marking a significant milestone in the ETF industry.
In a remarkable feat, BlackRock’s Bitcoin ETF achieved the fastest growth, hitting the $10 billion AUM milestone within just seven weeks post-launch on January 11. The company’s success in the Bitcoin ETF realm has spurred its pursuit of approval for a spot Ethereum ETF in the U.S. However, financial experts remain cautious about the SEC’s approval timeline for a spot Ethereum ETF, citing the regulator’s historical delays in processing applications.
Bloomberg’s ETF analyst James Seyffart has projected that approval for an Ethereum ETF may not materialize until May 23, the final deadline for applications submitted by VanEck and Ark Invest. This delay underscores the uncertainties surrounding the regulatory landscape and the anticipation surrounding the potential approval of a spot Ethereum ETF in the near future.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
