BlackRock to buy Bitcoin ETFs for $17B Global Allocation Fund

BlackRock, the world’s largest asset manager, is set to incorporate spot bitcoin exchange-traded funds (ETFs) into its Global Allocation Fund (MALOX), which is one of the most preferred vehicles for ordinary and passive investors.

In a filing with the Securities and Exchange Commission (SEC), BlackRock outlined its intention to invest in physically backed Bitcoin exchange-traded products (ETPs), specifically spot Bitcoin ETFs, for its Global Allocation Fund. The fund may consider purchasing BlackRock’s own spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), as well as ETFs from other issuers. Notably, the fund will exclusively invest in Bitcoin ETPs listed and traded on national securities exchanges.

The Global Allocation Fund, established in 1989, seeks to achieve investment returns through a fully managed policy that include U.S. and foreign equity, debt, and money market securities. With assets under management totaling $17.8 billion as of March 7, MALOX represents a major investment vehicle within BlackRock’s portfolio.

In normal market conditions, the primary fund invests at least 70% of its total assets in the securities of corporate and governmental issuers. Based on its past performance, it delivered a 5-year annualized total return of 10.35%, and ranks in the top third among its category peers.

This move by BlackRock follows a similar filing update for its Strategic Income Opportunities Fund (BSIIX) on March 4, indicating the company’s broader interest in integrating spot Bitcoin ETFs across its investment offerings.

The iShares Bitcoin Trust (IBIT), BlackRock’s spot Bitcoin ETF, has seen remarkable growth since its launch on January 11. With its BTC holdings multiplying by over 7,000% since inception, IBIT now holds roughly $12.6 billion worth of Bitcoin as of March 7.

In addition to its focus on Bitcoin, BlackRock has been actively advocating for the approval of a spot Ether ETF with U.S. regulators.