tl;dr
BlackRock, the world's largest asset management firm, has submitted a filing to the US Securities and Exchange Commission (SEC) to include Bitcoin Exchange Traded Funds (ETFs) in its Global Allocation Fund, reflecting a broader acceptance of the cryptocurrency within mainstream investment portfolios...
BlackRock, the world's largest asset management firm, has submitted a filing to the US Securities and Exchange Commission (SEC) to include Bitcoin Exchange Traded Funds (ETFs) in its Global Allocation Fund, reflecting a broader acceptance of the cryptocurrency within mainstream investment portfolios. According to the filing, BlackRock aims to invest in Bitcoin ETFs that directly hold BTC, with the objective of mirroring the cryptocurrency’s market performance. The document specifies, “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 strategic initiative is part of BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund with a mandate to provide investors with global diversification through investments in a wide array of assets, including equities, bonds, and now, potentially, Bitcoin ETPs. The Fund, which holds $17.8 billion in assets under management (AUM) and has achieved a 4.61% year-to-date (ytd) return as of March 7, seeks to capitalize on global investment opportunities while managing risk and aiming for long-term capital growth and income. Additionally, BlackRock previously applied to purchase spot Bitcoin ETFs for its Strategic Income Opportunities Fund, indicating a broader strategy to incorporate BTC into its diverse range of investment products. The SEC’s decision on BlackRock’s requests remains pending.
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