BlackRock Wants to Buy Spot Bitcoin ETFs for Global Allocation Fund

BlackRock has recently updated its filing with the Securities and Exchange Commission (SEC), indicating its intention to purchase spot Bitcoin ETFs for its Global Allocation Fund (MALOX).

The March 7 filing states that MALOX may acquire shares of BlackRock’s spot Bitcoin ETF, IBIT, and ETFs offered by other issuers, with the fund exclusively investing in ETPs traded and listed on national securities exchanges.

BlackRock Interest in Spot Bitcoin ETFs

Established in 1989, the BlackRock Global Allocation Fund aims to generate investment returns through a fully managed policy using U.S. foreign equity, debt, and money market securities, including holdings in companies like Apple.

BlackRock also recently updated a filing for its Strategic Income Opportunities Fund (BSIIX) on March 4, indicating a similar interest in purchasing spot Bitcoin ETFs.

Meanwhile, in a March 6 Filing, the SEC has postponed its decision on Nasdaq’s bid to offer options on BlackRock’s iShares Bitcoin Trust (IBIT), citing the need for “sufficient time to consider” Nasdaq’s request.

In a separate filing, the agency has also extended the response time for both the Cboe Exchange and the Miami International Securities Exchange.

The platforms had initially filed to list spot Bitcoin ETF options on January 25, and the SEC’s initial decision deadline was set for March 10 under U.S. securities laws, which allow 45 days for a decision or deferral. With this deferral, the agency now has an additional 45 days, reaching its maximum 90 days under the law to reach a final decision with the new deadline of April 24.

Industry Leaders Advocate for Options Trading

Options are financial derivative products that enable investors to speculate on the price of digital currencies like Bitcoin with leverage or hedge their digital asset portfolios.

Catherine Clay, the global head of derivatives at Cboe Global Markets, views options as a natural progression for spot Bitcoin ETFs,

In an interview with CNBC, the firm’s global head of derivatives stated , “We believe that the utility of the options, what they provide to the end investor in terms of downside hedging, risk-defined exposures into Bitcoin, really would help the end investor and the ecosystem.”

Options are good for investors, whether retail or institutional, and contribute to a robust and healthy market. Options support price discovery, and can help investors better navigate market conditions or achieve desired outcomes, such as generating income.

— Sonnenshein (@Sonnenshein) February 5, 2024

In a February X post, Michael Sonnenshein, CEO of Grayscale, also advocated for the approval of exchange-listed options for spot Bitcoin ETFs. He argued that options support price discovery and can assist investors in navigating market conditions or achieving desired outcomes, such as generating income.