In a recent filing with the SEC, BlackRock’s Global Allocation Fund disclosed its ownership of an additional 43,000 shares of the iShares Bitcoin Trust as of April 30. This follows BlackRock’s May 28 filings, which revealed the fund’s exposure to Bitcoin through its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock is trying to integrate Bitcoin into its investments. They have revealed a broader strategy to include Bitcoin ETFs in their portfolio, reflecting a growing interest in the digital currency market. These share purchases indicate a rise in traditional financial institutions investing in Bitcoin and Bitcoin ETFs.
After Bitcoin ETFs were approved, approximately 80% of Bitcoin ETF purchases came from retail investors. Major companies like BlackRock, Chase, and Morgan Stanley investing in Bitcoin ETFs signal a shift in the tide, as more large financial investors get involved with digital assets.
A spot crypto ETF tracks the price of a specific crypto and invests portfolio funds into that crypto. These funds are traded on public exchanges and track a particular crypto. Like similar funds, crypto ETFs are on regular stock exchanges, and investors can keep them in their standard brokerage accounts.
In March, BlackRock took a step towards incorporating Bitcoin by filing with the SEC to include Bitcoin ETFs in its Global Allocation Fund. According to the filing, the fund planned on purchasing shares in exchange-traded products (ETPs). BlackRock stated, “The Fund may acquire shares in exchange-traded products that seek to reflect generally the performance of the price of bitcoin by directly holding bitcoin, including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
This initiative aligns with BlackRock’s broader investment strategy for its Global Allocation Fund, designed to diversify investors through a wide range of assets, including equities, bonds, and Bitcoin ETPs. The fund invests globally in equity, debt, and short-term securities of corporate and governmental issuers without specific limits. Under normal market conditions, at least 70% of its assets are invested in these securities.
As of March 2024, the fund manages $17.8 billion in assets and has achieved a year-to-date return of 4.61%. Its goal is to take advantage of international investment prospects and make consistent gains over long periods.
