BlackRock’s Global Allocation Fund Increases Bitcoin Exposure
BlackRock’s Global Allocation Fund has significantly increased its exposure to Bitcoin (BTC) through the iShares Bitcoin Trust (IBIT) spot exchange-traded fund. Since the launch of the ETF in January 2024, the fund’s exposure to IBIT has risen by approximately 1,810%.
Key Highlights:
- The fund held 821,664 shares of IBIT as of Jan. 31, valued at around $47.4 million.
- Compared to the end of the first quarter of 2024, where it only held 43,000 shares of IBIT, the current exposure shows significant growth.
Incremental Allocation Since July
The latest disclosure from BlackRock’s Global Allocation Fund reveals a consistent trend of accumulation of IBIT shares. The fund’s exposure has increased by 91% since the end of the third quarter of 2024, where it reported 430,770 IBIT shares valued at just over $17 million.
Furthermore, the current share count is four times higher than the 198,874 shares recorded at the end of the second quarter. This upward trajectory in Bitcoin exposure indicates a sustained interest in increasing exposure to the digital asset.
Portfolio Allocation and Integration of Digital Assets
The Global Allocation Fund, managing approximately $15.8 billion in diversified assets, now allocates 0.25% of its portfolio to IBIT. This marks a substantial rise from the 0.1% share reported in October, signaling BlackRock’s growing willingness to integrate digital assets into traditional fund structures.
In addition, BlackRock has included Bitcoin in its $150 billion model portfolio, with a target allocation of 1% to 2% to IBIT. This shift underscores the expanding role of spot Bitcoin ETFs in institutional investment strategies, especially within multi-asset portfolios managed by global firms.
Industry Trends
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.
