March 27, 2024
Bitcoin ETF

BlackRock Expands Crypto Reach, Spot Bitcoin ETFs Added to MALOX Fund

In a bold move, BlackRock, one of the world’s largest asset managers, has disclosed plans to integrate spot Bitcoin exchange-traded funds (ETFs) into its renowned Global Allocation Fund (MALOX). The company’s updated filing with the United States Securities and Exchange Commission on March 7 reveals a strategic move towards incorporating physically backed Bitcoin exchange-traded products (ETPs), commonly known as spot Bitcoin ETFs.

According to the filing, MALOX is poised to invest in a variety of Bitcoin ETPs, including BlackRock’s own iShares Bitcoin Trust (IBIT) and those by other issuers. The filing specifies that the fund will exclusively engage with Bitcoin ETPs listed and traded on national securities exchanges.

Established in 1989, the BlackRock Global Allocation Fund aims to generate investment returns through a diverse investment policy encompassing U.S. and foreign equities, debt, and money market securities. As of March 7, MALOX manages assets totaling $17.8 billion.

Interestingly, MALOX isn’t the sole BlackRock fund eyeing spot Bitcoin ETFs. The filing for the Strategic Income Opportunities Fund (BSIIX) was also updated on March 4, aligning with the company’s broader crypto investment strategy.

BlackRock’s own spot Bitcoin ETF, IBIT, experienced significant growth, witnessing a surge of over 7,000% in BTC holdings since its January 11 debut. Its holdings ballooned from 2,621 BTC to an impressive 187,531 BTC as of March 7, 2024, with a current value of $12.6 billion.

While actively venturing into Bitcoin, BlackRock has not limited its aspirations to the pioneer cryptocurrency. The asset manager has been lobbying for a spot Ether ETF, filing a Form S-1 for its iShares Ethereum Trust with Delaware’s Division of Corporations in November 2023. Analysts speculate on the approval timeline, drawing parallels to Bitcoin’s decade-long journey to secure SEC approval for a spot ETF in the United States. The financial industry remains abuzz with anticipation, eager to witness how BlackRock’s foray into cryptocurrency will shape the evolving landscape of institutional investment.

Image from Flickr

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