BlackRock Global Allocation Fund Is Now Being Boosted By Bitcoin ETF Exposure

Key Points:

• The asset management firm seeks SEC approval to include a spot Bitcoin ETF in the BlackRock Global Allocation Fund.
• Targeting Bitcoin ETPs listed on national exchanges, BlackRock aims to diversify its portfolio with cryptocurrency assets.
• Amid surging Bitcoin ETF demand, BlackRock eyes improved fund performance by embracing digital assets.

BlackRock, a major investment firm, has submitted an application to the U.S. Securities and Exchange Commission (SEC) to incorporate exposure to a spot Bitcoin exchange-traded fund (ETF) within the BlackRock Global Allocation Fund.

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Spot Bitcoin ETF in BlackRock Global Allocation Fund

This move marks a notable shift towards cryptocurrency investments within the firm’s portfolio.

According to the recent filing, BlackRock intends to purchase shares of exchange-traded products (ETPs) that mirror the price performance of Bitcoin. The firm specifically targets Bitcoin ETPs backed by its affiliates, ensuring investments flow into ETPs listed on recognized national securities exchanges.

The filing 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.”

BlackRock spot Bitcoin ETF currently stands as the top-performing ETF in the market, contributing to the rising demand for Bitcoin ETFs. Last week witnessed record-breaking performances for all Bitcoin ETFs, with prices hitting new highs almost daily. Bitcoin’s value has remained strong this week, stabilizing around $67,000.

Market Surge Spurs BlackRock’s Interest

The BlackRock Global Allocation Fund aims to deliver competitive returns on global stocks while managing risk. Considering a period of underperformance earlier this year, BlackRock views investing in Bitcoin as a strategic move to bolster the fund’s performance, demonstrating confidence in Bitcoin ETFs amid the digital asset surge.

Earlier this week, BlackRock also applied to introduce Bitcoin ETF exposure to its Strategic Income Opportunities Fund. However, SEC approval is pending for the original request to increase ETF allocations within the SIO Fund.