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Investment giant BlackRock’s Ethereum-based BUIDL fund has raised $245 million in Ethereum tokens since its launch last week. According to Etherscan data, the BlackRock USD Institutional Digital Liquidity Fund has had 10 trades since the BUIDL fund launched on March 20 with $5 million.
Over the next seven days, an additional $239.8 million flowed into the ERC-20-based fund, including $92 million in Ondo short-term US Treasuries from tokenized real-world asset platform Ordo Finance.
“We are excited that BlackRock is embracing securities tokenization with the launch of BUIDL, and in particular is open to extensive collaboration with ecosystem participants,” Ordo Finance said in a blog post on Wednesday. “Not only does this further validate our original concept of tokenized U.S. Treasury funds, but the tokenization of traditional securities on public blockchains is the next big step in the evolution of financial markets. This also supports our claim.”
Although not a stablecoin like USDT or USDC, BlackRock says BUIDL’s value is intended to remain 1:1 with the US dollar, with 1 BUIDL equaling 1 dollar. Cryptocurrency stablecoins aim to bring some stability to the often volatile cryptocurrency market and provide an exchange route for fiat currencies and other tokens.
BlackRock said the fund invests 100% of its assets in cash, U.S. Treasuries and repurchase contracts.
On March 14, BlackRock filed documents with the U.S. Securities and Exchange Commission regarding the BlackRock USD Institutional Digital Liquidity Fund, which is based in the British Virgin Islands. News of the filing renews hopes that a Spot Ethereum ETF could become a reality despite the SEC’s opposition to BlackRock’s iShares. Ethereum Trust ETF.
Last week, the SEC also postponed a decision on Grayscale’s Ethereum ETF until the end of May.
According to data from the Real World Assets (RWA) platform, BlackRock’s BUIDL ranks second behind Franklin Templeton’s Franklin On-Chain U.S. Government Money Fund, which has a market capitalization of $360.2 million. The market capitalization of the Ethereum-based BlackRock BUIDL fund is 106.5 million.
talk to CNBC In January, BlackRock CEO Larry Fink made the case for a crypto-based exchange-traded fund after the SEC approved the first Bitcoin ETF.
“I think there is value in having an Ethereum ETF,” Fink said at the time. “As I said, these are just stepping stones to tokenization.”
While there has been strong interest in Ethereum spot ETFs, such investment vehicles are unlikely to garner as much interest as the currently available Bitcoin (which attracted $4.5 billion in its first day of public availability).
Edited by Ryan Ozawa.
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