BlackRock’s BUIDL fund, which operates on the Ethereum network, has seen a significant increase in assets despite the current market volatility. The fund, which requires a minimum investment of $5 million, has now reached a total of $491 million in assets. This growth comes at a time when the broader crypto market has experienced a significant decline, with Bitcoin dropping below $57,000.
Launched in March on the Ethereum network, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is the company’s first tokenized fund. Qualified investors can participate in the fund through the fintech company Securitize, which recently secured a $47 million funding round, with BlackRock among the investors.
The BUIDL fund allocates investments into U.S. Treasury bills, cash, and repurchase agreements, allowing investors to earn yields while holding their assets as tokens on the blockchain. Despite the market turmoil, BUIDL has shown positive growth, with assets under management (AUM) reaching $491 million, up from $486.46 million just a week ago.
In comparison, the BENJI fund from Franklin Templeton has only seen $33.97 million in capital inflows during the same period, highlighting the strong performance of BUIDL. This growth has solidified BUIDL’s position as the largest blockchain-based money market fund, surpassing BENJI in May when its AUM reached $375 million.
The steady growth of BUIDL amidst market volatility demonstrates the confidence investors have in the fund’s ability to generate returns. As the crypto market continues to fluctuate, BlackRock’s BUIDL fund remains a stable and attractive option for investors looking to navigate the uncertainties of the market.