- BlackRock has updated a filing with the SEC looking to add physically backed Bitcoin ETFs into MALOX.
- IBIT has seen its Bitcoin holdings surge by over 7,000% since launch.
- BlackRock’s move has suggested they might be looking to add other cryptocurrencies to their offerings.
The investment landscape for a major asset manager is set to shift as BlackRock, one of the world’s largest, revealed plans to include spot Bitcoin exchange-traded funds (ETFs) in its Global Allocation Fund (MALOX). This move signifies a growing appetite for cryptocurrency exposure among traditional financial institutions.
BlackRock Eyes Bitcoin ETFs for Global Fund
An updated filing with the U.S. Securities and Exchange Commission (SEC) on March 7th details BlackRock’s intention. The filing states that MALOX, a fund launched in 1989 that traditionally invests in a mix of U.S. and foreign equities, debt, and money market securities, will incorporate physically-backed Bitcoin ETFs.
This opens the door for MALOX to invest in BlackRock’s own iShares Bitcoin Trust (IBIT), alongside spot Bitcoin ETFs offered by other issuers. The filing emphasizes that only Bitcoin ETPs listed and traded on national securities exchanges will be considered.
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This decision comes just days after BlackRock submitted a similar filing for its Strategic Income Opportunities Fund (BSIIX). BlackRock’s iShares Bitcoin Trust, launched in January 2024 alongside several other spot Bitcoin ETFs in the U.S., has seen significant growth.
IBIT Holdings Up 7,000%
IBIT boasts the fastest growth among its peers, increasing its Bitcoin holdings by over 7,000% to 187,531 BTC as of March 7th, 2024. This translates to a staggering $12.6 billion in Bitcoin holdings at the current market price.
BlackRock’s interest in cryptocurrency extends beyond Bitcoin. The company has actively pursued regulatory approval for a spot Ether ETF with U.S. watchdogs. Whether the SEC will greenlight a spot Ether ETF in 2024 remains to be seen, considering the decade-long wait for a Bitcoin ETF.
On the Flipside
- While MALOX will include spot Bitcoin ETFs, the filing doesn’t specify the allocation percentage. It might be a small investment with limited portfolio impact.
- The SEC’s stance on cryptocurrency ETFs is still evolving. Even if BlackRock includes them, regulatory hurdles could still delay or restrict investment.
Why This Matters
BlackRock’s decision to include Bitcoin ETFs in a major fund like MALOX marks a significant shift, coinciding with IBIT’s meteoric growth, or it could be seen as a sign of mainstream adoption accelerating, perhaps even outpacing expectations.
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To learn more about BlackRock’s Bitcoin ETF and its impact on the recent surge in Bitcoin prices, read here:
BlackRock Bitcoin ETF Marks New Inflow High as BTC Claims ATH
To learn more about the SEC’s delay in approving Ether ETFs and the applications from BlackRock and Fidelity, read here:
SEC Extends ETH ETF Wait with BlackRock and Fidelity Delays
