Investments will be limited to Bitcoin ETPs that are listed and traded on recognized national stock exchanges, ensuring regulatory compliance and oversight.
BlackRock’s existing BTC Spot ETF stands out as the best-performing option on the market, contributing to the surge in demand for Bitcoin ETFs.
BlackRock Inc. (NYSE: BLK), the world’s leading asset manager, has taken a bold step by filing with the US Securities and Exchange Commission (SEC) for approval to incorporate exchange-traded funds. (Bitcoin Spot ETF) in its Global Allocation Fund.
The updated application notes that MALOX wants to acquire BlackRock’s own spot bitcoin ETF, the iShares Bitcoin Trust (IBIT), as well as ETFs from other issuers:
“The fund may acquire shares in ETPs that attempt to generally reflect the evolution of the price of bitcoin through the direct holding of bitcoin – ‘Bitcoin ETP’ -, including shares of a bitcoin ETP sponsored by a subsidiary of BlackRock.”
Launched in 1989, the BlackRock Global Allocation Fund seeks to provide investment returns through a fully managed investment policy using US and foreign equity, debt and money market securities, including companies such as Microsoft, Apple and others. As of March 7, MALOX had $17.8 billion in assets under management.
BlackRock’s Strategic Initiative
The filing filed by BlackRock outlines its intention to acquire shares of exchange-traded products (ETPs) that track the performance of Bitcoin, including those sponsored by affiliated entities.
The Global Allocation Fund, managed by BlackRock, has $17.8 billion in assets under management (AUM) and has returned 4.61% year-to-date through March 7. With a mandate to provide investors with global diversification across various asset classes, such as stocks, bonds and potentially cryptocurrencies, the fund aims to take advantage of promising investment opportunities while mitigating risks and targeting capital growth and returns. long-term income.
BlackRock’s decision to include Bitcoin ETFs in its fund portfolio has caught the attention of crypto analysts and market observers. MacroScope, a notable commentator, highlighted the relevance of BlackRock’s move, anticipating similar actions by other Wall Street firms in the coming months.
BlackRock’s interest in Bitcoin ETFs extends beyond its Global Allocation Fund. The company recently approached the SEC with a proposal to increase investments in Bitcoin ETFs for its Strategic Income Opportunities Fund, a fund with an AUM of $36.7 billion.
However, SEC’s clearance is still pending for this application, meaning the future of the investments depends on regulatory approval. Despite the fund’s poor performance this year, with a modest 0.59% year-to-date gain, the move signals BlackRock’s strategy of incorporating Bitcoin investments across its fund portfolios.
BlackRock’s Bitcoin ETF Performance and Regulatory Hurdles
BlackRock’s existing BTC Spot ETF stands out as the best-performing option on the market, contributing to the surge in demand for Bitcoin ETFs. Last week saw record-breaking returns for Bitcoin ETFs, coinciding with Bitcoin’s continued rally, hovering around $68,000.
Recently, Bitcoin is trading at approximately $67,357, reflecting a 1.04% increase in the last 24 hours, with a market capitalization exceeding $1.3 trillion. However, despite the growing momentum, regulatory hurdles remain. According to a recent filing, the SEC delayed its decision on BlackRock’s spot Bitcoin ETF options trading application until April 24, citing the need for additional time to evaluate the proposed rule change.
Additionally, the SEC has also deferred decisions on whether to allow options trading on spot Bitcoin ETFs proposed by other entities such as Cboe Exchange, Inc. and Miax Pearl LLC, setting a similar deadline of April 24.
These developments highlight regulatory complexity and uncertainties. around the integration of Bitcoin and other cryptocurrencies into traditional financial markets.
By Audy Castaneda
