The world’s largest asset manager, BlackRock, is doubling down on its plans to acquire Bitcoin for its Global Allocation Fund (MALOX).
According to a filing with the US Securities and Exchange Commission (SEC), the fund might acquire shares in exchange-traded funds (ETFs) reflecting the performance of Bitcoin, including the Bitcoin ETFs offered by BlackRock.
“The fund will only invest in Bitcoin ETPs that are listed and traded on national securities exchanges,” the filing with the SEC said.
JUST IN: 🇺🇸 BlackRock filed with the SEC to purchase spot #Bitcoin ETFs for its Global Allocation Fund. pic.twitter.com/qYfQoQ3Cbr
— Bitcoin Magazine (@BitcoinMagazine) March 7, 2024
BlackRock’s Global Allocation Fund offers investors returns similar to those of global stocks while promising lower risk. The fund had a slow start at the beginning of the year, and with the recent Bitcoin hype, BlackRock anticipates that adding Bitcoin ETFs will improve performance.
The Global Allocation Fund, which launched in 1989, currently holds around $17.8 billion in assets under management.
Blackrock Doubling Down On Crypto
This recent filing marks the second application with the US securities regulator as BlackRock seeks to increase its investment in Bitcoin and related products.
On March 4, the asset manager proposed an amendment to its Strategic Income Opportunities portfolio with plans to add Bitcoin ETFs. In the prospectus, BlackRock also informed investors of the risks of these products, including losing part or all of the investment.
This filing has yet to receive approval from the SEC. Despite approving spot Bitcoin ETFs, the SEC Chair, Gary Gensler, remains skeptical of Bitcoin and the entire cryptocurrency industry.
Gensler recently compared Bitcoin to a rollercoaster saying it was a “highly speculative asset.”
🚨BREAKING: SEC Chair Gary Gensler says: “ #BITCOIN is a highly speculative asset class. ” pic.twitter.com/M32SDaZPlO
— JackTheRippler ©️ (@RippleXrpie) March 7, 2024
The regulator is also hesitant to approve a spot Ethereum ETF. Wall Street giants BlackRock and Fidelity have filed with the SEC to have an Ethereum ETF. However, the commission recently delayed its decision on this product, with the final deadline set for May 23.
While the crypto market is anxiously looking forward to the approval of this product, speculations are rife that the commission might reject the applications. It took nearly a decade for the SEC to approve a spot Bitcoin ETF.
Blackrock’s Domination in the Spot Bitcoin ETF Market
BlackRock launched the iShares Bitcoin Trust (IBIT) on January 11. The ETF debuted alongside nine other spot Bitcoin ETFs launched in the country, and they have since emerged among the best-performing ETFs in history.
BlackRock has been aggressively accumulating Bitcoin for its IBIT ETF. On January 11, this ETF held 2,621 BTC, but the held amount has since increased by 7,000%.
As of March 6, the ETF held 187,531 BTC and is fast closing in on MicroStrategy’s stash of 193,000 BTC. MicroStrategy is the largest corporate holder of Bitcoin. BlackRock’s Bitcoin holdings are worth over $12 billion at the current prices.
BlackRock’s IBIT ETF is also the top-performing Bitcoin ETF in terms of net flows. On March 7, the product amassed a total net inflow of $244 million, with the total flows since launch nearing $10 billion.
Fidelity had the most flows on March 7, with $473 million. Other issuers have been struggling to compete against the two Wall Street giants. Bitwise and ARK Invest posted net flows of $41 million and $42 million, respectively, on March 7.
[1/4] Bitcoin ETF Flow – 07 March 2024
All data in. Net total inflow of $472.6m. Another strong day, with Fidelity performing well, with +$473.4m of flow
Over $10 billion withdrawn from GBTC since 11th Jan 2024 pic.twitter.com/rpWyaqGxhL
— BitMEX Research (@BitMEXResearch) March 8, 2024
According to Bloomberg ETF analyst Eric Balchunas, spot Bitcoin ETFs continue to generate interest on Wall Street as “bored passive investors” seek some market volatility. The ETFs are also garnering demand because of their low fee.
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