BlackRock launches Ethereum-backed fund with $100m for digital assets
BlackRock, in collaboration with Securitize, a prominent asset tokenization firm, has unveiled the BlackRock USD Institutional Digital Liquidity Fund. Although the specific assets held by the fund have not been disclosed, Securitize’s involvement suggests a focus on tokenizing real-world assets (RWA). This process involves using blockchain tokens to represent ownership of a wide range of assets, a practice that is gaining popularity due to its potential to improve asset liquidity and efficiency.
The announcement and filing with the Securities and Exchange Commission (SEC) regarding BlackRock’s new fund had an immediate impact on the digital assets market. Ondo Finance’s native token, ONDO, experienced a significant surge of up to 22% in value, surpassing the performance of Bitcoin (BTC). Ondo Finance operates a platform for RWA, indicating the market’s positive response to BlackRock’s initiative.
Etherscan also revealed a transfer of $100 million of Circle’s USDC stablecoin to an address associated with a Securitize deployer. This transaction is speculated to represent a seed investment into the new fund, although no official confirmation has been made.
BlackRock’s venture into digital liquidity funds builds upon its ongoing exploration of digital assets. The company made headlines in January by launching a spot-based Bitcoin ETF, which quickly accumulated over $15 billion in assets under management. Furthermore, a filing for a spot Ether (ETH) ETF was submitted last year, demonstrating BlackRock’s growing commitment to integrating blockchain technologies into its offerings.
In a CNBC interview in January, BlackRock CEO Larry Fink stated that BTC and ETH ETFs are just the initial steps toward a broader shift towards asset tokenization. Fink believes that this represents the future direction of the financial sector, offering the potential for faster settlements and improved operational efficiencies.
