By Michael Scott
BlackRock’s Global Allocation Fund aims to invest in the firm’s Bitcoin exchange-traded funds (ETFs) as well as resources from other issuers.
A recent filing by Blackrock shows a revised filing with the U.S. Securities and Exchange Commission (SEC), capturing its plan to buy spot Bitcoin exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX). According to the March 7 filing, MALOX might acquire shares of BlackRock’s spot Bitcoin exchange-traded fund, iShares Bitcoin Trust (IBIT), and exchange-traded funds provided by other issuers. Further, the fund will entirely invest in ETPs traded and listed on national securities exchanges.
BlackRock Fund Interest in Spot Bitcoin ETFs
The BlackRock Global Allocation Fund was developed in 1989 and seeks to make investment returns via a wholly managed approach. It uses United States foreign equity, money market securities, debt, and holdings in firms such as Apple.
On March 4, BlackRock revised a filing for its Strategic Income Opportunities Fund (BSIIX), showing the same interest in buying spot Bitcoin exchange-traded funds. In a March 6 filing, the Securities and Exchange Commission has deferred its verdict on Nasdaq’s plan to provide alternatives in BlackRock’s IBIT, alluding to the need for ‘adequate time to consider’ Nasdaq’s request.
In another filing, the SEC has extended the response time for the Miami International Securities Exchange and the Chicago Board Options Exchange (Cboe). Previously, the platforms had filed to list Bitcoin exchange-traded fund alternatives on January 25. Additionally, the SEC’s previous verdict deadline was set for March 10 under United States securities guidelines, which permits 45 days for a deferral or decision. Under the rescheduling, the SEC has an extra 45 days, attaining the maximum 90 days required to arrive at an ultimate verdict.
Industry Executives Call for Options Trading
Options involve the financial derivative products aimed at allowing investors to forecast the price of digital currencies such as Bitcoin seeking to hedge their digital assets portfolio during plunge in price. According to Catherine Clay, Cboe Global Markets’ international head, options are a natural advancement for spot Bitcoin exchange-traded funds.
In an interview, she claimed that the end investor and the ecosystem would benefit from the utility of the alternatives, risk-defined exposures into Bitcoin, and what is offered to the end investor in terms of downside hedging.
In an X post last month, Grayscale’s chief executive officer, Michael Sonnenshein, also supported the sanctioning of exchange-listed options for spot Bitcoin exchange-traded funds. He believes that alternatives back price discovery and can aid investors in traversing market conditions or attaining intended outcomes, for instance, making income.