BlackRock, the world’s largest asset manager with $9.1 trillion of assets under management (AUM), has filed with the US Securities and Exchange Commission (SEC) to gain exposure to Bitcoin through spot Bitcoin exchange-traded fund (ETFs) for its Global Allocation Fund. This filing signifies BlackRock’s continued interest in cryptocurrency and could be a sign of growing institutional adoption of Bitcoin.
Adding Crypto To A Diversified Portfolio
The regulatory filing reveals that the Global Allocation Fund may invest in “Bitcoin exchange-traded products (ETPs), including Bitcoin ETPs managed and issued by BlackRock affiliates.” This move suggests BlackRock views Bitcoin as a potential diversifier for its clients’ portfolios, and Bitcoin’s price movements have historically shown little correlation with traditional asset classes, potentially offering a hedge against market downturns.
BlackRock’s Global Allocation Fund
BlackRock’s Global Allocation Fund is a diversified mutual fund offered by BlackRock. This fund is designed to provide investors with exposure to a wide range of asset classes, including stocks, bonds, and other securities, across both domestic and international markets. The fund’s objective is to achieve long-term capital appreciation while managing risk through diversification.
Impact On The Crypto Market
The news of BlackRock’s filing has already generated interest in the cryptocurrency market. If approved, BlackRock could attract significant investment from mainstream institutions. This increased demand could lead to a rise in Bitcoin’s price and further legitimize cryptocurrency as a whole.
