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 filing follows BlackRock’s May 28 filings that revealed the fund’s exposure to Bitcoin through its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock is trying to utilize and integrate Bitcoin into its investments. They have revealed a broader strategy to integrate Bitcoin ETFs into their investment portfolio, reflecting its growing interest in the digital currency market.
Bitcoin expansion
These share purchases signal an ever-growing increase in traditional financial institutions investing in Bitcoin — and Bitcoin ETFs.
After Bitcoin ETFs were approved, approximately 80% of Bitcoin ETF purchases originated from self-directed or retail investors who made their own allocation through an online brokerage account.
Major companies like BlackRock (or Chase and Morgan Stanley) investing in Bitcoin ETFs signals a shift in the tide,as more large financial investors get involved with the digital asset.
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 but generally track a particular crypto. Like similar funds, crypto ETFs are on regular stock exchanges, and investors can keep them in their standard brokerage accounts.
BlackRock’s BTC goals
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 was planning on purchasing shares in exchange-traded products (ETPs).
Blackrock filed intentions to buy ETPs and stated that “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 ETPs”), 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, a mutual fund designed to diversify investors through a wide range of assets, including equities, bonds and, most likely, Bitcoin ETPs.
The fund globally invests 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.