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BlackRock, a renowned investment entity, has recently made a significant move by filing essential documents with the U.S. Securities and Exchange Commission. This filing, conducted on Thursday, marks the intention of BlackRock to establish a tokenized asset fund. The specifics regarding the fund’s total size have not been made public as of yet.
The foundation of the BlackRock USD Institutional Digital Liquidity Fund, registered in the British Virgin Islands back in 2023, signifies a structured pooled investment fund structure. BlackRock has indicated that the fund will require a minimum investment threshold of $100,000 from external investors. While the precise amount of the fund remains undisclosed by BlackRock in its filing, estimates suggest a potential range from $1 million to $100 million.
This development from BlackRock emerges in a climate of optimism surrounding the potential approval of a spot Ethereum ETF. This optimism follows the U.S. Securities and Exchange Commission’s authorization of 11 spot Bitcoin ETFs in the month of January. Additionally, recent months have seen BlackRock’s iShares Bitcoin Trust surpass $1.3 billion in total shares following its launch earlier.
Despite maintaining a degree of ambiguity in their disclosures, BlackRock initiated an application with the SEC for an iShares Ethereum Trust back in February. The prevailing conjecture regarding the Institutional Digital Liquidity Fund revolves around the strong possibility of an Ethereum-centric orientation, with stablecoin assets constituting a significant portion of the fund’s composition.
In a notable statement made to CNBC in January, BlackRock’s CEO Larry Fink expressed his support for the concept of an Ethereum ETF. Fink remarked, “I see value in having an Ethereum ETF. As I said, these are just stepping stones towards tokenization.”
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