The Ethereum-based BUIDL fund from the leading asset manager BlackRock has gulped over $5 million in assets over the past week despite the ongoing market turbulence.
Market analytics resource IntoTheBlock (ITB) revealed this in a recent disclosure, stressing that the fund has commanded considerable interest among investors.
— IntoTheBlock (@intotheblock) July 8, 2024While the crypto market struggles, BlackRock's $BUIDL fund, operating on the Ethereum network, continues to attract new investors.
The fund requires a minimum entry of $5 million, and its total assets have now reached $491 million. pic.twitter.com/Bl19tVVxbW
Launched in March on Ethereum, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) marks the company’s first tokenized fund. It allows qualified investors to procure yields in U.S. dollars by subscribing through the fintech company Securitize.
Notably, two months after the fund’s launch, Securitize secured a $47 million funding round from multiple investors, including BlackRock.
The BUIDL fund allocates investments into U.S. Treasury bills, cash, and repurchase agreements. This enables investors to generate yield while maintaining their holdings as tokens on the blockchain. Despite a correlation with the crypto industry, the fund has maintained a positive path amid the ongoing market turmoil.
According to data sourced by ITB, BUIDL now boasts $491 million in assets under management (AUM) amid a sustained growth trajectory. This feat comes as the broader global crypto market lost $290 billion in July, with Bitcoin (BTC) collapsing below $57,000.
On-chain data shows that BUIDL’s AUM stood at $486.46 million as of July 2. Interestingly, this figure has since increased to $491.83 million, recent data confirms. The growth rate indicates an addition of $5.37 million in the last week despite the bearish atmosphere.
With this bullish performance, BUIDL has maintained its position as the largest blockchain-based money market fund. Notably, BUIDL surpassed the BENJI fund from Franklin Templeton to become the largest money market fund in May, when its AUM soared to $375 million.
— Tom Wan (@tomwanhh) April 30, 20241/ Blackrock's BUIDL has surpassed Franklin Templeton's BENJI (FOBXX) in AUM and became the largest On-Chain Money Market Fund
– BUIDL has grown 36.5% MoM from $274M to $375M
– BENJI only grew 2.1% MoM from $360M to $368M pic.twitter.com/zcMzThfAAh
As such, BUIDL has recorded inflows totaling $116.83 million. Meanwhile, BENJI has only seen $33.97 million in capital inflows within the same period.