BlackRock's BUIDL Ethereum Fund Draws $245 Million In a Week

BlackRock's Ethereum-focused BUIDL fund has attracted $245 million in Ethereum tokens just a week after its launch, Etherscan reports show.

The fund saw its first investment of $5 million on March 20, with subsequent investments totaling $239.8 million, including a significant $92 million from Ordo Finance in tokenized US Treasuries.

Ordo Finance praised BlackRock's entry into securities tokenization with BUIDL, highlighting it as a validation of their tokenized Treasury fund concept. They emphasized that tokenizing traditional securities is a critical evolution in finance.

BlackRock aims for BUIDL to mirror the U.S. dollar's value, with each BUIDL equivalent to $1, setting it apart from stablecoins but seeking to provide market stability and ease of exchange for fiat and other tokens. The fund is dedicated to investing in cash, U.S. Treasury bills, and repurchase agreements.

Following a March 14 SEC filing for the fund, there's renewed hope for an Ethereum ETF, despite previous SEC reservations about BlackRock’s Ethereum ETF proposal.

The SEC has delayed a decision on Grayscale’s Ethereum ETF to the end of May. BUIDL currently stands as the second largest on the RWA platform, with a market capitalization of 106.5 million.

BlackRock CEO Larry Fink discussed the potential of crypto-based ETFs in January, after the SEC approved Bitcoin ETFs. Fink sees an Ethereum ETF as a step towards full tokenization.

Although an Ethereum spot ETF garners interest, it is unlikely to attract as much investment as the Bitcoin ETFs, which raised $4.5 billion on their debut.