Some new information from IntoTheBlock (ITB) about the market shows that BlackRock’s BUIDL fund has gained more than $5 million in assets in just one week. This is a strong sign that investors have faith in a market that is very volatile right now.
In March, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) was launched on the Ethereum blockchain. It is the first tokenized fund from a significant asset manager. If you subscribe through the financial company Securitize, you can join the fund with as little as $5 million and earn returns in U.S. dollars.
Driving Growth and Stability Amid Market Challenges
Even though the crypto market as a whole has lost a lot of money—most notably, $290 billion in July and Bitcoin’s drop below $57,000—BUILD has been incredibly strong. According to ITB, the fund’s assets under management (AUM) have risen to $491 million, a significant jump from the $486.46 million that was revealed just one week ago.
As part of its investment plan, the fund will buy U.S. Treasury bills, cash, and buyback agreements. The fund stores its stocks as tokens on the blockchain so that it can keep track of them. Since the market is unstable, it’s clear that investors seeking security and yield have been drawn to this one-of-a-kind approach.
Records from the past showed that BUIDL was the most important blockchain-based money market fund. When its AUM reached $375 million in May, it was worth more than Franklin Templeton’s BENJI fund. A lot of money has been coming into BUIDL since then. Around the same time, $116.83 million has come into BUIDL, but only $33.97 million has come into BENJI.
Two months after BUIDL started, Securitize got a $47 million round of funding. The company started the fund and still runs it. Now and then the market changes, but this move shows that companies are more interested in digital asset management options.
