The BlackRock BUIDL fund increased by 70 million dollars last week, taking the top spot from Franklin Templeton’s BENJI offering. The latter recorded smaller outflows, according to blockchain data.
In particular, a large part of these inflows has been driven by the growth of the OUSG token by Ondo Finance. Let’s see all the details below.
BlackRock BUIDL surpasses Franklin Templeton with $375 million in tokenized assets
As anticipated, the tokenized asset fund BUIDL managed by BlackRock (BLK) has become the largest in its category on Tuesday. Surpassing Franklin Templeton’s similar offering just six weeks after its launch.
The fund, called BlackRock USD Institutional Digital Liquidity Fund, is represented by the BUIDL token on the Ethereum (ETH) network and backed by US Treasury bills, forward contracts and liquidity.
Currently it has $375 million in deposits, thanks to $70 million in inflows recorded last week, according to the blockchain data from rwa.xyz.
The fund was created in collaboration with the tokenization platform Securitize and, since its debut on March 21, has captured almost 30% of the market share.
Meanwhile, the Franklin OnChain U.S. Government Money Fund, represented by the BENJI token, has decreased to 368 million dollars in assets under management due to lower outflows in the same period.
This change in positions was largely due to the growth of Ondo Finance (ONDO). Its tokenized Treasury offering, called OUSG, uses BlackRock’s token as a reserve asset.
Ondo Finance has indeed benefited from 50 million dollars of inflows in one week.
The advantages of tokenization
The rapid growth of BlackRock’s first tokenized offering occurred at a time when the tokenization of real-world assets (RWA), such as bonds and credit, is gaining interest.
This happens both among digital asset companies and among traditional finance giants (TradFi).
Tokenization promises benefits such as faster payments and 24/7 availability, greater operational efficiency, and increased transparency. US Treasuries have become a gateway to tokenization efforts.
In particular, acting as well-known and low-risk tools that allow investors to park their liquidity on-chain. They also allow to obtain stable returns without leaving the blockchain ecosystem.
The market for tokenized Treasuries has grown from nearly $100 million at the beginning of 2023 to almost $1.3 billion, partly thanks to BlackRock’s entry into the sector.
ETF spot Bitcoin in the United States down: four consecutive days of negative outflows
The spot market of Bitcoin Exchange Traded Funds (ETF) in the United States has recorded the fourth consecutive day of negative outflows. According to public data, on Monday, April 29th, the spot ETFs on Bitcoin in the United States experienced an outflow of approximately $52 million.
Of all the ten spot Bitcoin ETFs listed in the United States, only three issuers have recorded positive flows: Bitwise (BITB), Franklin (EZBC), and Valkyrie (BRRR). Overall, on Monday these three issuers totaled an inflow of 10.7 million dollars.
However, larger asset managers such as Fidelity (FBTC), Ark Invest (AKB), and Grayscale Investment (GBTC) have seen significant outflows. Ark Invest’s Bitcoin spot ETF recorded the largest negative flow, with $31.3 million lost.
Fidelity has seen an outflow of 4.9 million dollars, while Grayscale has recorded an outflow of 24.7 million dollars. Although this is a decrease compared to the 88 million dollars from last Friday.
Furthermore, BlackRock, one of the largest asset managers, has maintained a flat flow for the fourth consecutive day, with no inflow or outflow recorded.
This helps keep the entire US Bitcoin spot ETF market in the red, with the latest positive flow observed on Tuesday, April 23.
The recent report from CoinShares on the global cryptocurrency investment market confirmed a decrease in trading volume to 11.8 billion dollars compared to the previous week’s 18 billion.
The report suggests that this decline is correlated with a 6% decrease in the market value of Bitcoin, leading institutions to adopt a more cautious approach.