BlackRock’s BUIDL Fund Surges with $5 Million Inflows Despite Market Turbulence

BlackRock’s BUIDL fund has defied market turbulence by attracting over $5 million in assets in just one week, according to recent data from market analytics resource IntoTheBlock (ITB). Despite the ongoing struggles in the crypto market, the Ethereum-based BUIDL fund has continued to command significant interest from investors.

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 and earn yields in U.S. dollars by subscribing through fintech company Securitize. Two months after its launch, Securitize 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 generate yield while holding their assets as tokens on the blockchain. Despite the market turmoil, BUIDL has maintained a positive trajectory, with its total assets under management (AUM) reaching $491 million.

In July, the global crypto market experienced a loss of $290 billion, with Bitcoin falling below $57,000. However, BUIDL’s AUM has continued to grow, increasing from $486.46 million on July 2 to $491.83 million in the last week. This growth rate represents an addition of $5.37 million despite the bearish market conditions.

With this performance, BUIDL has solidified its position as the largest blockchain-based money market fund, surpassing Franklin Templeton’s BENJI fund. BUIDL has recorded inflows totaling $116.83 million, while BENJI has only seen $33.97 million in capital inflows during the same period.

Overall, BlackRock’s BUIDL fund has demonstrated resilience and attractiveness to investors, even in the face of market volatility. Its success highlights the growing interest in blockchain-based financial products and the potential for digital assets to provide stable returns in uncertain times.