BlackRock’s Global Allocation Fund Boosts Bitcoin ETF Holdings by 38.4% in Q2
BlackRock’s Global Allocation Fund has significantly increased its holdings in the firm’s spot Bitcoin ETF (IBIT) during the second quarter, according to a recent SEC filing. The fund now holds 1,000,808 IBIT shares valued at $66.4 million, marking a 38.4% increase from the previous quarter.
This surge in holdings represents a return to Bitcoin allocation for the fund, which had reduced its exposure earlier this year. The year-over-year growth of 403% showcases accelerating Bitcoin adoption within BlackRock’s portfolio management.
The current allocation of IBIT represents 0.4% of the Global Allocation Fund’s $17.1 billion assets under management, a substantial increase from previous quarters. BlackRock had recommended a 1% to 2% Bitcoin allocation in its model portfolio, and the recent increases indicate a movement towards this target range through gradual accumulation.
The Global Allocation Fund invests across various asset classes, including US and international equities, debt securities, and money market instruments. The fund’s strategic approach to Bitcoin allocation demonstrates institutional investment strategies for crypto exposure and managing volatility.
IBIT was launched by BlackRock in January 2024 as one of the first spot Bitcoin ETFs approved by the SEC. With nearly $61 billion in cumulative net flows, IBIT is currently the largest Bitcoin ETF in the market.
In conclusion, BlackRock’s Global Allocation Fund’s increased holdings in IBIT reflect a strategic approach to Bitcoin allocation and demonstrate the firm’s commitment to gradually building its position towards recommended portfolio weightings. This measured approach helps manage volatility and aligns with BlackRock’s investment philosophy.
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