BlackRock, the world’s largest asset management firm, has submitted a filing to the US Securities and Exchange Commission (SEC) to incorporate Bitcoin Exchange Traded Funds (ETFs) in its Global Allocation Fund. This move underscores a major pivot of BlackRock towards the mixing of BTC, reflecting a broader acceptance of the cryptocurrency inside mainstream investment portfolios.

Global Allocation Fund To Include Bitcoin

In keeping with the filing, BlackRock goals to take a position in Bitcoin ETFs that directly hold BTC, with the target 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 worth of Bitcoin by directly holding Bitcoin (‘Bitcoin ETPs’), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.” Moreover, it clarifies that any Bitcoin ETP investments will probably be limited to those listed and traded on recognized national securities exchanges.

This strategic initiative is an element of BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund with a mandate to offer investors with global diversification through investments in a big selection 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.

Crypto analysts have commented on the importance of BlackRock’s move, with MacroScope stating, “A latest filing by BlackRock late this afternoon. As I’ve been saying, you’re going to see plenty of this in the approaching months from Wall Street firms for his or her in-house investment funds.” This sentiment reflects a growing consensus that the entry of major institutional investors into the space is imminent, potentially driving further demand and adoption.

BlackRock Doubles Down On BTC

This filing follows a previous application by BlackRock to buy spot Bitcoin ETFs for its Strategic Income Opportunities Fund, indicating a broader strategy by the asset manager to include BTC into its diverse range of investment products. With the BTC market continuing to point out strength, BlackRock’s foray into spot BTC ETFs could position its funds to profit from the digital asset’s potential for top returns.

Notably, the Strategic Income Opportunities Fund is double the scale of the Global Allocation Fund, with an AUM of $36.7 billion. Nevertheless, the fund is showing a fairly underperformance this yr, with a slight 0.59% gain ytd.

Nevertheless, the SEC’s decision on BlackRock’s requests stays pending. The commission under chairman Gary Gensler still must approve each filings. Despite that, BlackRock’s initiative to integrate BTC into its funds is an especially bullish sign that will pave the best way for other asset managers to explore Bitcoin as a viable component of their diversified investment funds.

At press time, BTC traded at $67,176.

Featured image from The Trade, chart from TradingView.com