BlackRock’s Global Allocation Fund has significantly increased its exposure to Bitcoin (BTC) through the iShares Bitcoin Trust (IBIT) spot exchange-traded fund. According to a recent filing submitted to the US Securities and Exchange Commission (SEC) on March 2, the fund now holds 821,664 shares of IBIT, valued at approximately $47.4 million. This represents a remarkable 1,810% increase in exposure since the ETF was launched in January 2024.
The fund’s incremental allocation to Bitcoin has been steadily rising since July, with a 91% increase in exposure since the end of the third quarter of 2024. At that time, the fund held 430,770 IBIT shares worth just over $17 million. This latest disclosure reflects a consistent upward trajectory in the fund’s Bitcoin exposure over the past year, indicating a sustained interest in increasing its allocation to the digital asset.
Despite the small percentage, the Global Allocation Fund now allocates 0.25% of its portfolio to IBIT, up from 0.1% reported in October. This significant rise signals a growing willingness by BlackRock to integrate digital assets into traditional fund structures. In fact, BlackRock has also incorporated Bitcoin into its $150 billion model portfolio, with a target allocation of 1% to 2% to IBIT.
The increasing role of spot Bitcoin ETFs within diversified institutional investment strategies is becoming more prominent, particularly in the context of multi-asset portfolios managed by global firms. A recent report by River revealed that hedge funds and registered investment advisors have increased their Bitcoin exposure through ETFs by approximately 357% in 2024, reaching a total of $34.3 billion.
Overall, BlackRock’s Global Allocation Fund’s significant increase in exposure to Bitcoin through the iShares Bitcoin Trust spot ETF reflects a growing trend of institutional interest in digital assets. As traditional financial institutions continue to embrace cryptocurrencies, Bitcoin and other digital assets are becoming more mainstream investment options within diversified portfolios.
In conclusion, BlackRock’s strategic allocation to Bitcoin highlights the evolving landscape of institutional investment in the digital asset space. As more traditional firms recognize the potential of cryptocurrencies, we can expect to see continued growth and adoption of digital assets within traditional investment structures.