Benzinga - by Mehab Qureshi, Benzinga Staff Writer.
Financial behemoth BlackRock Inc (NYSE:BLK) has submitted a filing with the Securities and Exchange Commission, outlining plans to create a new fund centered on tokenized assets. The firm has kept the total size of the fund under wraps.
What Happened: Stationed in the British Virgin Islands and founded in 2023, the newly proposed BlackRock USD Institutional Digital Liquidity Fund will be launched in partnership with asset tokenization firm Securitize, which is poised to operate as a collective investment vehicle.
According to a document filed with the SEC, BlackRock stated that it is looking to attract capital, setting a minimum threshold of $100,000 for investments from any individual outside investor. Though BlackRock opted not to reveal the fund’s size in its filing, it mentioned that investments could range anywhere from $1 to a cap of $100 million.
This move comes when the market is optimistic about the potential approval of an Ethereum (CRYPTO: ETH) based ETF, especially after the SEC gave the green light to 11 spot Bitcoin (CRYPTO: BTC) ETFs earlier in January.
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Why It Matters: BlackRock filed an application for an iShares Ethereum Trust with the SEC in February.
In a discussion with CNBC in January, Larry Fink, the CEO of BlackRock, talked about the future of tokenization, stating, “BTC and ETH ETFs are just stepping stones towards tokenization, and I really do believe this is where we’re going to be going.”
Tokenization is the process of converting rights to an asset into a digital token on a blockchain. This token represents ownership or a stake in the underlying asset — real estate, art, or securities. Essentially, it’s a way of creating a digital version of a physical asset for easier and more secure trading and ownership transfer on the blockchain.
Leading financial firms such as Brevan Howard and KKR have already declared initiatives aiming at tokenizing portions of their investment funds. Citigroup projects that by 2030, the market for tokenized assets could explode to as much as $5 trillion, indicating the growth potential of this digital financial approach.
Price Action: At the time of writing, the price of ETH was $3,112, down 8% in the last 24 hours, according to Benzinga Pro.
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