BlackRock plans to buy Bitcoin ETFs for its $18 billion Global Allocation Fund
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BlackRock, the world’s leading asset management firm, is set to diversify its Global Allocation Fund with the addition of Bitcoin ETFs. A recent SEC filing amendment reveals the firm’s intent to integrate these products into its $18 billion fund.
BlackRock’s Global Allocation Fund invests in a variety of assets across different countries and 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.
“If the Fund acquires shares in a Bitcoin ETP, including a Bitcoin ETP sponsored by an affiliate of BlackRock, shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such Bitcoin ETP. Such expenses, both at the Fund level and acquired Bitcoin ETP level, would include management and advisory fees and the sponsor’s fee, as applicable, unless such fees have been waived by BlackRock.”
The 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.
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