BlackRock has requested the US Securities and Exchange Commission (SEC) to invest in its proprietary Bitcoin exchange-traded funds (ETFs) alongside funds from rivals into its Global Allocation Fund.
The recent update by the Larry Fink-led BlackRock illustrates its intention to buy the spot Bitcoin ETFs for the Global Allocation Fund identified as MALOX. A review of BlackRock’s Thursday, March 7 filing to the SEC captures that MALOX intends to acquire shares in BlackRock’s IBIT and crypto-ETFs from other issuers.
The Thursday filing indicates that the fund will exclusively invest in the ETPs trading and listing on the national securities exchange.
BlackRock Affirms Interest in Spot Bitcoin ETFs
BlackRock has evolved since establishing the Global Allocation Fund in 1989, which aims to generate investment returns via managed policy. The fund targeted foreign equity, money market securities, and debt in the US alongside undertaking holdings within entities such as Apple.
Further review of BlackRock’s activities shows an updated filing on March 4 involving the Strategic Income Opportunities Fund (BSIIX). The fund harbors a similar interest in acquiring spot Bitcoin ETFs.
The Gensler-chaired SEC they postponed the decision on the March 6 Filing by Nasdaq’s attempt to offer options on BlackRock’s iShares Bitcoin Trust (IBIT). The Commission cites the necessity of having sufficient time to examine the Nasdaq’s request.
In a separate filing, the SEC has sought an extended time to respond to the Miami International Securities Exchange and Cboe Exchange. The platforms submitted an initial application for the spot Bitcoin ETF options on January 25.
The agency had a March 10 deadline to decide, as enshrined in the Securities laws, to offer 45 days for deferral. With the agency embracing the 45-day deferral, the SEC has up to 45 days, resulting in 90 maximum days. It sets the deadline for April 24 for the agency’s decision.
Industry Executives Supporting Options Trading
Industry readers toute the availability of options as inevitable as investors seek expanded exposure to financial derivative products. The availability of options will enable investors to speculate on crypto prices with leverage and hedge digital asset portfolios.
The Cboe Global Markets’s derivatives head, Catherine Clay, considers the options as essential and natural progression for the spot Bitcoin ETFs.
In a January 20 interview with CNBC, she reiterated the Cboe Global Markets’ belief in options’ utility. The derivatives head indicated that options offer investors a downside heading. Also, options offer risk-defined exposures into the crypto, thus facilitating end investors and the ecosystem.
In a February post, Grayscale Investments chief Mi, Chael Sonnenshei su, reported the approval of exchange-listed options linked to the spot Bitcoin ETFs. The executive indicated that options facilitate price discovery while assisting the investors in navigating market conditions or realizing desired outcomes.
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