BlackRock Expands Crypto Reach: BUIDL Fund Goes Multi-Chain Across These 5 Blockchainsc

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that I am nothing short of thrilled with BlackRock’s recent expansion of their BUIDL fund to include five new blockchain ecosystems. Having witnessed the rapid growth and success of BUIDL since its launch in March 2024, I can confidently say that this multi-chain approach is a game-changer for real-world asset tokenization.

On Wednesday, BlackRock, a leading crypto ETF issuer and asset manager, disclosed plans to broaden the scope of its USD Institutional Digital Liquidity Fund (BUIDL) by incorporating five additional blockchain ecosystems: Aptos, Arbitrum, Avalanche, Optimism, and Polygon.

Beginning in March 2024, BUIDL first appeared on the Ethereum network and swiftly garnered attention from investors, eventually claiming the title of the world’s largest tokenized fund by assets managed (AUM) within a mere 40 days.

BNY Mellon To Custody BUIDL

The expansion will enable BUIDL to connect with a wider variety of blockchain-based financial services and structures. BlackRock intends to improve access for investors, decentralized autonomous organizations (DAOs), and digital asset companies, so they can utilize BUIDL in the financial systems that best suit their needs.

Carlos Domingo, as CEO and co-founder of Securitize, highlighted the significance of a multi-chain strategy during a recent press release. He underscored that this versatile approach is crucial for BUIDL tokenization.

Real-world asset tokenization is scaling, and we’re excited to have these blockchains added to increase the potential of the BUIDL ecosystem. With these new chains we’ll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do.

By incorporating these blockchain technologies, BlackRock intends to expand investment choices and facilitate easier access for investors. This integration enables developers to construct apps that can smoothly collaborate with the BUIDL fund.

In this endeavor, BNY Mellon, having secured a license for Bitcoin and cryptocurrency custody in institutional services, will assume a pivotal position, serving as both the fund administrator and custodian for BUIDL.

BlackRock Bitcoin ETF Achieves Unprecedented Growth

Regarding cryptocurrency exchange-traded funds (ETFs), BlackRock’s Bitcoin ETF, known as IBIT, has achieved an impressive feat, crossing the $40 billion threshold in managed assets (Assets Under Management or AUM) only two weeks after hitting $30 billion.

In just 211 days, we’ve broken a record that was previously held by the iShares Core MSCI Emerging Markets ETF (IEMG) for 1,253 days. In simpler terms, our accomplishment surpassed the 1,253-day milestone set by IEMG.

1BIT currently ranks among the elite 1% of all Exchange-Traded Funds (ETFs) based on assets under management. Remarkably, this relatively new fund, which is only 10 months old, has already surpassed every one of the approximately 2,800 ETFs that debuted over the past ten years, according to Eric Balchunas, a recognized expert in the ETF industry.

Balchunas emphasized that the combined value of Bitcoin ETFs has surpassed $90 billion, after experiencing a substantial increase of approximately $6 billion over the last few days.

This increase comprises $1 billion in new inflows and $5 billion in market appreciation. The growing popularity of Bitcoin ETFs indicates that they are now 72% of the way toward surpassing gold ETFs in total assets.

The growth of assets in Bitcoin Exchange-Traded Funds (ETF) has been accompanied by an increase in investor trust, notably after Donald Trump’s win against Kamala Harris in the latest U.S. presidential election, which seems to have boosted their confidence.

The change in politics has boosted investor confidence, which has resulted in a general increase in the prices of cryptocurrencies. Notably, Bitcoin has seen a significant surge, rising by more than 24% and hitting an all-time high of $93,000 within just a week.

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2024-11-14 09:40