- BlackRock has added a hefty 43k IBIT shares to their internal Global Allocation Fund.
- The Global Allocation Fund is available to clients seeking long-term gains with a high level of diversity.
- This marks the third internal BlackRock fund that has acquired IBIT ETF shares since the product went live in January this year.
I suppose it makes sense to buy into your own funds – naturally, an asset manager should be confident in the performance of their customer-facing portfolios. However, it still always looks a little bit weird to see “BlackRock has invested in… BlackRock”.
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But that’s exactly what happened earlier this year when the world’s largest asset managers bought into iShares Bitcoin Trust (IBIT) via an internal fund. The acquisition was disclosed earlier this week, with BlackRock’s Global Allocation Fund confirmed to be holding 43K IBIT shares as of April the 30th.
BlackRock Continues to Cement Themselves as an Institutional Ally
BlackRock’s Global Allocation Fund is one of the key internal portfolios the asset managers offer to clients focussed on “long-term growth”. An important philosophy of the fund is diversity, with over 700 securities represented – making Bitcoin a logical addition.
This marks the third of BlackRock’s internal funds (separate to their publicly-traded ETFs) that has purchased a significant amount of IBIT in the past six months.
BlackRock has been a keen ally to the crypto scene for a few years now. Larry Fink, CEO of the financial giant, has been fairly outspoken in his support of digital currencies and blockchain tech. The company has become heavily involved in tokenisation of late, alongside their hugely successful spot crypto ETF products.
While Fink and co might be the best example of institutional involvement in the crypto scene, it marks a broader legitimisation of the digital asset industry among once-skeptical TradFi players.
ETF Fistfight Heats Up
BlackRock has doubled down on its own spot Bitcoin funds and is set to be one of the key players in the upcoming Ether ETF race.
A clear winner of the BTC sweepstakes, BlackRock secured millions from investors within a few months of IBIT trading and will likely dominate Ether ETFs when that time comes, too.
But not everybody is happy with Larry Fink’s institution being such a dominant force in the digital assets market. Competitors VanEck – who just released the first Aussie Bitcoin ETF directly on the ASX – have jumped the shark on…a Solana ETF.
The philosophy is that being first-to-market may loosen BlackRock’s stranglehold on the spot crypto ETF scene and give VanEck a competitive advantage.
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Of course, the problem is, Solana ETFs aren’t approved for trading. And they’re not even close – most analysts believe we’re talking at least mid-2025 before the SEC gives it the time of day.
The community quickly admonished VanEck’s strategy, identifying it as business maneuvering rather than a legitimate desire to introduce a Solana ETF.
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