BlackRock, a prominent asset management firm, is currently in the process of seeking regulatory approval to include spot Bitcoin exchange-traded funds (ETFs) in its Global Allocation Fund, known as MALOX.

The firm recently updated its filing with the United States Securities and Exchange Commission (SEC) on March 7, outlining its intention to invest in physically-backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) and those offered by other issuers. This move signifies BlackRock’s interest in allowing its fund to invest directly in Bitcoin through national securities exchanges.

BlackRock Global Allocation Fund

The BlackRock Global Allocation Fund, established in 1989, aims to generate investment returns by managing a diversified portfolio consisting of equity, debt, and money market securities from both U.S. and international markets. Notable companies such as Microsoft and Apple are among the fund’s investments. As of the latest update, MALOX has managed assets totaling $17.8 billion.

This strategic move by BlackRock is part of its broader strategy to engage with digital assets. The firm also updated its filing for the Strategic Income Opportunities Fund (BSIIX) on March 4, indicating a similar interest in incorporating spot Bitcoin ETFs into its investment strategy. BSIIX, with assets under management (AUM) of $36.7 billion, surpasses MALOX in size but has experienced modest gains this year.

Growing Acceptance of Cryptocurrencies

The potential inclusion of Bitcoin ETPs in these funds reflects a significant shift in the investment landscape, indicating a growing acceptance of cryptocurrencies among major institutional investors. MacroScope, a crypto analysis platform, commented on the filing, noting the expected increase in such moves by Wall Street firms in the upcoming months, signaling a potential rise in demand and adoption of cryptocurrencies.

Despite the proactive steps taken by BlackRock, the SEC’s approval of these filings is still pending. The commission, led by Chairman Gary Gensler, has yet to greenlight BlackRock’s proposals to incorporate Bitcoin ETPs into its investment offerings. Nonetheless, BlackRock’s initiative is viewed as a positive development for the cryptocurrency sector, potentially encouraging other asset managers to consider Bitcoin as a component of their investment portfolios.

Innovations in the Cryptocurrency Sector

In addition to exploring Bitcoin ETPs, BlackRock has launched the iShares Bitcoin Trust, which commenced trading on January 11. Since its debut, IBIT has seen a significant increase in its Bitcoin holdings, positioning it as the fastest-growing spot Bitcoin ETF in the United States.

Furthermore, BlackRock has shown interest in expanding its cryptocurrency portfolio beyond Bitcoin. In November 2023, the company filed an application for a spot Ether ETF, the iShares Ethereum Trust, with Delaware’s Division of Corporations. The outcome of this application, alongside the broader acceptance of cryptocurrency ETFs by U.S. regulators, remains a closely watched development within the financial and cryptocurrency communities.

For more updates and news on the cryptocurrency sector, continue exploring Global Crypto News.

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