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One of the world’s largest asset managers, BlackRock, is planning to purchase spot Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX). According to an update filed with the United States Securities and Exchange Commission on March 7, BlackRock intends to include physically-backed Bitcoin exchange-traded products, or in other words, spot Bitcoin ETF funds, as part of MALOX.
BlackRock’s Noteworthy Move
The updated filing indicates that MALOX could purchase shares of BlackRock’s own spot Bitcoin ETF fund, the iShares Bitcoin Trust (IBIT), as well as ETF funds from other issuers. The document included the following statement:
“The Fund may purchase shares of ETPs that aim to reflect the performance of the Bitcoin price by holding Bitcoin directly, including shares of a Bitcoin ETP backed by an affiliate of BlackRock.”
The filing specified that the fund would only invest in Bitcoin ETPs that are listed and traded on national securities exchanges. Launched in 1989, the BlackRock Global Allocation Fund aims to provide investment returns through a fully managed investment policy using U.S. and foreign equity and money market securities, including companies like Microsoft, Apple, and others. As of March 7, MALOX had $17.8 billion in assets under management.
Key Details on the ETF Process
MALOX is not the only BlackRock fund that wants to hold spot Bitcoin ETF funds. The updated SEC filing came just a few days after BlackRock submitted a similar update for its Strategic Income Opportunities Fund (BSIIX) on March 4. BlackRock’s spot Bitcoin ETF fund, the iShares Bitcoin Trust, began trading alongside nine other spot Bitcoin ETF funds in the United States on January 11.
IBIT became the fastest-growing spot Bitcoin ETF fund by increasing its Bitcoin holdings from 2,621 Bitcoin on January 11 to 187,531 Bitcoin by March 7, 2024, an increase of over 7,000%. At the time of writing, IBIT’s Bitcoin holdings were valued at $12.6 billion.
In addition to spot Bitcoin ETF funds, BlackRock is actively working with U.S. regulators on a spot Ethereum ETF fund. In November 2023, BlackRock filed Form S-1 with the Delaware Division of Corporations for the iShares Ethereum Trust. Industry analysts and observers were discussing whether U.S. financial watchdogs would approve the launch of a spot Ethereum ETF fund in 2024. It took over a decade for the SEC to support a spot ETF fund for Bitcoin in the United States.
