Markets
BlackRock BUIDL adds over $5 million in a week despite market turmoil
Leading asset manager BlackRock’s Ethereum-based BUIDL fund absorbed over $5 million in assets last week despite ongoing market turmoil.
Market analysis resource IntoTheBlock (ITB) revealed this in a recent disclosure, emphasizing that the fund has garnered considerable interest among investors.
As the cryptocurrency market struggles, BlackRock’s $BUIDL fund, operating on the Ethereum network, continues to attract new investors.
The fund requires a minimum down payment of $5 million, and its total assets now stand at $491 million. photo.twitter.com/Bl19tVVxbW
— IntoTheBlock (@intotheblock) July 8, 2024
Released in March in EthereumThe BlackRock USD Institutional Digital Liquidity Fund (BUIDL) marks the firm’s first tokenized fund. It allows qualified investors to earn yields in U.S. dollars by subscribing through fintech firm Securitize.
Notably, two months after the fund’s launch, Securitize guaranteed a $47 million funding round from multiple investors including BlackRock.
The BUIDL fund allocates investments across U.S. Treasury bills, cash, and repurchase agreements. This allows investors to generate income while holding their holdings as tokens on the blockchain. Despite a correlation with the cryptocurrency industry, the fund has maintained a positive path amid ongoing market turmoil.
According to data obtained by ITB, BUIDL now boasts $491 million in assets under management (AUM) amid a sustained growth trajectory. This feat comes as the global cryptocurrency market lost $290 billion in July, with Bitcoin (BTC) falling below $57,000.
On-chain data show that BUIDL’s AUM was $486.46 million as of July 2. Interestingly, this number has increased to $491.83 million, confirming recent data. The growth rate indicates an addition of $5.37 million in the last week, despite the bearish atmosphere.
With this bullish performance, BUIDL maintained its position as the largest blockchain-based money market fund. Notably, BUIDL outperformed the BENJI Fund Franklin Templeton to become the largest money market fund in May, when its AUM soared to $375 million.
1/ Blackrock’s BUIDL has surpassed Franklin Templeton’s BENJI (FOBXX) in AUM to become the largest On-Chain Money Market Fund
– BUIDL grew 36.5% MoM from $274 million to $375 million
– BENJI grew just 2.1% MoM from $360 million to $368 million photo.twitter.com/zcMzThfAAh— Tom Wan (@tomwanhh) April 30, 2024
As such, BUIDL recorded inflows totaling $116.83 million. Meanwhile, BENJI saw just $33.97 million in capital inflows in the same period.