Key Points
- BlackRock is considering buying spot bitcoin ETFs for its Global Allocation Fund.
- The firm has also proposed the launch of a spot Ethereum ETF.
BlackRock, a U.S.-based asset management firm, has revealed plans to potentially buy spot bitcoin ETFs for its Global Allocation Fund. This was stated in a recent filing with the Securities and Exchange Commission (SEC).
The company stated in the filing, "The Fund may acquire shares in exchange-traded products (ETPs) that seek to reflect generally the performance of the price of bitcoin by directly holding bitcoin (Bitcoin BTC) ETPs, including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock." The firm also added that it would only consider investing in bitcoin ETFs listed on national securities exchanges.
Global Allocation Fund and Strategic Income Opportunities Fund
The Global Allocation Fund, which uses U.S. and foreign equity, debt, and money market securities to maximize returns, managed assets worth $17.8 billion as of March 7, according to BlackRock. This week, the firm also filed to include spot bitcoin ETFs in its Strategic Income Opportunities Fund, which manages over $36.7 billion.
BlackRock's iShares Bitcoin Trust (IBIT), its spot bitcoin ETF, has been leading the ETF race since its launch in January. Following bitcoin's new all-time high above $69,000, it saw record daily inflows of $788.3 million on Tuesday. At present, IBIT holds $12.7 billion worth of bitcoin.
BlackRock's Proposed Ethereum ETF
In addition to its success with bitcoin, BlackRock has also proposed the launch of a spot Ethereum ETF. However, the SEC has postponed making a decision on this proposal, along with a similar one from Fidelity.
