BlackRock debuts BUIDL, its first tokenized fund on Ethereum
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The world’s largest asset manager has launched its first Ethereum-based tokenized fund, BUIDL. This groundbreaking initiative aims to provide qualified investors with a new way to earn US dollar yields through subscriptions via Securitize Markets, marking a crucial milestone in BlackRock’s digital assets strategy.
Crypto markets have gone feverish again in the past week. Bitcoin has recently experienced a slip to $64K amid a broader crypto sell-off, as large outflows from the Grayscale Bitcoin Trust (GBTC) continue to impact the market. However, analysts suggest that once the GBTC selling is completed or at least almost done. The same analysis claims that ETF inflows could pick up again, thanks to favorable macro conditions and supportive central bank policies.
Despite recent price volatility, Bernstein analysts remain bullish on Bitcoin, raising their year-end price target to $90,000 and extending the positive outlook to Bitcoin miners. They find Bitcoin miners stocks to be compelling buys for equity investors seeking exposure to the crypto cycle, citing factors such as the new Bitcoin bull cycle and strong ETF inflows as key drivers for their optimistic stance.
Today’s Newsletter
- BlackRock debuts BUIDL, its first tokenized fund on Ethereum
- Bitcoin slips to $64K as large Grayscale GBTC outflows continue
- Bitcoin set to reach $90,000 by year-end, forecast Bernstein analysts
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ETHEREUM
BlackRock debuts BUIDL, its first tokenized fund on Ethereum
The global investment management giant has taken a critical step into the world of digital assets by launching its first Ethereum-based tokenized fund, BUIDL. The fund, initially seeded with $100 million USDC, aims to provide qualified investors with a new way to earn US dollar yields through subscriptions via Securitize Markets.
The tokenization of BUIDL allows for the issuance and trading of fund shares on the blockchain, offering benefits such as immediate settlement and enhanced liquidity, broadening the appeal to a more global investor base.
The fund’s ecosystem includes key players in the digital asset space, such as Anchorage, BitGo, Coinbase, and Fireblocks, alongside BlackRock Financial Management, Inc. as the investment manager, and Bank of New York Mellon as custodian and administrator. [cryptobriefing]
MARKETS
Bitcoin slips to $64K as large Grayscale GBTC outflows continue
The alpha cryptocurrency experienced a tumultuous Friday, with its price slipping below $63,000 at one point before rebounding to around $64,000, still down 3.7% over the past 24 hours. The broader crypto market also felt the impact, with the CoinDesk 20 Index declining by 4.4% over the same period, led by a steep drop in Solana’s SOL token. Galaxy Digital CEO Mike Novogratz suggested that it might take some time before Bitcoin recovers to its recent all-time high of $73,000.
The weak price action coincides with US-listed spot bitcoin ETFs experiencing four consecutive days of net negative flows, primarily due to massive outflows from the Grayscale Bitcoin Trust (GBTC). Despite nearly all funds continuing to see inflows, they have not been enough to offset the outflows, with GBTC alone seeing $359 million in outflows on Thursday.
Analysts at Coinbase Institutional believe that once the GBTC selling is completed, possibly related to Genesis selling shares as part of its bankruptcy process, ETF inflows could pick up again, supported by favorable macro conditions and policies supportive of the new financial products. [coindesk]
BITCOIN
Bitcoin set to reach $90,000 by year-end, forecast Bernstein analysts
Bernstein analysts have raised their year-end price target for Bitcoin to $90,000, following BTC’s strong start to the year with a 55% price increase. The analysts also view Bitcoin miners as attractive investments for equity investors, citing factors such as the new Bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues. Bernstein revised its estimate for the reduction in hashrate post-halving from 15% to 7%, based on current conditions.
The analysts boosted their price target for CleanSpark to $30, while maintaining a bullish outlook on the stock, which has seen impressive weekly and year-to-date gains. However, they lowered the price target for Riot Platforms to $22 and maintained a neutral outlook on Marathon Digital, despite raising its price target to $23.
Recent data from Spot on Chain and BitMEX Research reveals that spot Bitcoin ETFs have experienced negative inflows for three consecutive days, with Grayscale’s Bitcoin trust seeing significant outflows. [cryptobriefing]
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