BlackRock plans to buy Bitcoin ETFs for its $18 billion Global Allocation Fund

Share this article

BlackRock, the world’s leading asset management firm, is set to diversify its Global Allocation Fund with the investment in Bitcoin ETFs. A recent SEC filing amendment reveals the firm’s intent to buy these products for its $18 billion fund.

Launched in 1989, BlackRock’s Global Allocation Fund seeks to maximize returns for investors by building a diversified portfolio of US and international asset classes. As of March 7, the fund had $17.8 billion worth of investments under its management, as reported by BlackRock.

The filing details the fund’s approach to Bitcoin ETFs, specifying that investments will be made in those listed and traded on national securities exchanges.

“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. The Fund will only invest in Bitcoin ETPs that are listed and traded on national securities exchanges,” according to the filing.

BlackRock emphasizes that while shareholders will incur their share of the fund’s expenses, they will also indirectly bear the costs associated with the Bitcoin ETFs, including management and advisory fees unless the firm waives them.

The latest news follows last month’s comments from Rick Rieder, BlackRock’s Global Chief Investment Officer of Fixed Income, regarding the potential increase in Bitcoin holdings based on growing investor confidence.

As of March 7, BlackRock’s newly launched spot Bitcoin ETF held nearly $13 billion worth of Bitcoin, according to data from the iShares Bitcoin Trust’s website. The firm is pursuing approval for a spot Ethereum ETF.

Share this article