BlackRock, a premier global asset manager, has announced intentions to acquire direct Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund, MALOX. This move, as revealed in a recent filing with the U.S. Securities and Exchange Commission, aims to diversify the fund’s holdings by adding physically-backed Bitcoin products. The fund, standing at $17.8 billion in assets under management, is positioning itself to include shares of exchange-traded products (ETPs) that directly hold Bitcoin and mirror its market performance.
Strategic Expansion into Cryptocurrency
Under the new plan, MALOX could potentially invest in BlackRock’s own iShares Bitcoin Trust (IBIT) as well as offerings from other ETP issuers. The Global Allocation Fund, which invests across various asset classes including equities and money market instruments, is known for its managed investment policy encompassing U.S. and international securities.
Growth of BlackRock’s Bitcoin Holdings
This strategic interest in Bitcoin is not confined to MALOX alone. Following a similar filing for the Strategic Income Opportunities Fund (BSIIX), BlackRock’s iShares Bitcoin Trust has shown significant growth, with a Bitcoin holdings increase of over 7,000% within less than two months. As of March 7, the Fund’s Bitcoin assets were valued at $12.6 billion. This remarkable trajectory underscores BlackRock’s increasing focus on digital assets, as the firm also pursues regulatory discussions for a direct Ethereum ETF.
With industry speculation about the potential for a U.S. spot Ethereum ETF in 2024, BlackRock’s proactive filing for an iShares Ethereum Trust in late 2023 signifies the firm’s commitment to expanding its crypto-related offerings, amid a regulatory landscape that has only recently begun to accommodate such investment vehicles.
As BlackRock continues to adapt its investment strategies to incorporate digital assets, the financial world closely watches for potential industry shifts and the wider adoption of cryptocurrency within mainstream investment funds.