BlackRock, the US-based asset management titan, is planning to invest in Bitcoin Spot ETFs through its Global Allocation Fund (MALOX) and Strategic Income Opportunities Fund (BSIIX), adopting a new strategy to directly exposure to BTC.
In an official statement to the SEC to update MALOX, BlackRock stated that the fund may acquire shares in ETFs that seek to generally reflect the performance of the bitcoin price by holding bitcoins directly. This includes shares of a bitcoin ETF financed by an affiliate of BlackRock.
A Broadened Investment Strategy for BlackRock
BlackRock has updated its filings with the US Securities and Exchange Commission (SEC), revealing its plans to purchase not only its own issued Bitcoin Spot ETFs but also those issued by other entities.
This decision marks a significant turning point, with the Global Allocation Fund and Strategic Income Opportunities Fund seeking to maximize returns using equities, debt, and money markets both in the US and abroad, managing nearly $18 billion and $36 billion in assets respectively as of March 8, according to BlackRock.
BlackRock will thus be actually buying bitcoins, not through managing its ETF or on behalf of their clients, but for the purpose of generating returns for its own funds.
The funds will only invest in Bitcoin ETFs that are listed and traded on national securities exchanges.
IBIT: Leading the ETF Race
BlackRock’s Bitcoin Spot ETF, the iShares Bitcoin Trust (IBIT), has emerged as a leader since its launch in January, reaching record daily inflows of $788.3 million on Tuesday following Bitcoin’s new all-time high above $69,000.
IBIT currently holds $12.7 billion worth of bitcoin, illustrating the increased demand for BTC-based investment products.
Towards an Ethereum Spot ETF?
Alongside the success of IBIT, BlackRock has also proposed the launch of an Ethereum Spot ETF, an initiative that awaits the SEC’s response, just like a similar proposal from Fidelity.
