BlackRock, a global asset management powerhouse, is set to diversify its Global Allocation Fund (MALOX) by acquiring spot Bitcoin exchange-traded funds (ETFs).
A recent update to its United States Securities and Exchange Commission (SEC) filing on March 7 indicates the firm’s interest in integrating physically backed Bitcoin exchange-traded products (ETPs), including its own iShares Bitcoin Trust (IBIT) and ETFs from other providers.
The statement from the filing emphasizes, “The fund may acquire shares in 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.”
These investments will focus on Bitcoin ETPs listed on national securities exchanges, ensuring compliance with trading standards.
The BlackRock Global Allocation Fund, established in 1989, aims to yield returns through a dynamic investment approach, involving U.S. and international equities, debt, and money market securities from major corporations like Microsoft and Apple.
As of the recent update, MALOX boasts $17.8 billion in assets under management.
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However, MALOX isn’t the sole BlackRock fund eyeing spot Bitcoin ETFs.
A similar intention was revealed for its Strategic Income Opportunities Fund (BSIIX) in an SEC filing dated March 4.
The firm’s venture into Bitcoin ETFs gained momentum with the launch of the iShares Bitcoin Trust on January 11, paralleled by nine other spot Bitcoin ETFs in the U.S.
Remarkably, the iShares Bitcoin Trust has shown exponential growth, with its Bitcoin holdings surging over 7,000% from 2,621 BTC at its inception to 187,531 BTC by March 7, 2024, valuing its assets at $12.6 billion.
Moreover, BlackRock is exploring the potential of a spot Ether ETF, having filed an application for the iShares Ethereum Trust in November 2023.
The financial community is closely watching to see if U.S. regulators will greenlight a spot ETH ETF in 2024, considering it took over a decade for the SEC to approve a spot Bitcoin ETF in the nation.
This move by BlackRock underscores its proactive stance in expanding its cryptocurrency offerings, reflecting a growing interest in digital asset investments within traditional financial sectors.
On March 8, Bitcoin soared to unprecedented heights, propelled by the U.S. unemployment data which strengthened the argument for potential interest rate cuts.
The cryptocurrency reached an all-time high of $70,184 on Bitstamp, as per data from Cointelegraph Markets Pro and TradingView, amidst optimistic market movements encouraged by the latest jobless statistics from February.
These figures surpassed expectations, suggesting that inflationary pressures might be diminishing due to strict economic policies.
The national unemployment rate was reported at 3.9%, a slight increase from predictions, while the job growth numbers for January were adjusted downwards.
The Kobeissi Letter, a trading analysis platform, noted that the market responded positively, with stocks climbing.
This upward trend was attributed to the increased unemployment rate and significant revisions to job additions.
The cryptocurrency market, including Bitcoin and various altcoins, rallied along with stocks, marking a significant moment as Bitcoin crossed the $70,000 threshold for the first time.
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Market analysts highlighted the importance of this milestone occurring ahead of a scheduled block subsidy halving, suggesting that Bitcoin could reach its macro cycle peak sooner than anticipated.
Mikybull Crypto, a prominent voice in the market, remarked on social media platform X (formerly Twitter), “Bitcoin is doing what it has not done in history. Cycle top is coming faster than what people projected.”
Additionally, the jobs data indicated a weakening U.S. dollar, with the U.S. dollar index (DXY) dropping to near its two-month low at 102.36, down almost 5% from its peak earlier in the year.
This decline in dollar strength further fueled speculation regarding the Federal Reserve’s next moves.
Although the Fed’s decision on interest rates is awaited on March 20, expectations remain largely hawkish, with the CME Group’s FedWatch Tool estimating a mere 3% chance of an interest rate cut.
Throughout the week, Fed officials, including Chair Jerome Powell, have reiterated a cautious stance on future monetary policies, maintaining conservative language despite the optimistic market trends spurred by the latest economic indicators.