According to CryptoQuant analyst Maartunn, this growth is the result of a combination of risk-hedging and expectations of price appreciation. Fund managers are using derivative products to hedge their positions while continuing to seize upside opportunities. 

Another indicator supporting this institutional movement is the rise of spot ETH ETFs. Data from SoSo Value reveals that spot Ethereum ETFs have seen uninterrupted inflows for the past 16 days, with total inflows exceeding $5 billion during this period. 

ETF Inflows Accelerate, BlackRock Leads 

Ethereum ETFs are currently experiencing the strongest streak of inflows since their launch. BlackRock’s ETH ETF is leading this trend and currently holds nearly 3 million ETH. According to ETF analyst Nate Geraci, net inflows into the funds reached $452.72 million on July 25 alone. This figure marks the fourth-largest single-day inflow in Ethereum ETF history. 

Moreover, ETH ETFs have outperformed Bitcoin ETFs in terms of performance over the past 7 days. This indicates that investors are increasing their positions in favor of ETH and that new capital flows are shifting accordingly. 

Whale Addresses Increase, Technical Indicators Support the Rally 

Institutional movement isn’t limited to ETFs. Data from Glassnode shows that 170 new addresses holding more than 10,000 ETH have been added to the network in the last 30 days. This increase has brought the total number of such mega whale wallets to 1,050. These types of wallets usually belong to custodial institutions and indicate a strong accumulation trend. 

The price of ETH is currently trading at $3,771. It has risen by 2.41% in the past 24 hours, while daily trading volume has decreased by 40% to $25.38 billion. The total market capitalization has reached $452 billion. 

On the technical side, analyst Merlijn The Trader noted using TradingView data that Ethereum is still moving within its long-term primary channel. This channel previously generated strong reversal signals in 2018 and 2021. Additionally, RSI data indicates that ETH is not currently in overbought territory, suggesting that the rally remains healthy. 

The acceleration in institutional buying, the record open interest in futures, increased ETF inflows, and the rise in mega whale wallets may all create upward pressure on Ethereum’s price in the coming period. The direction of institutional capital appears to favor ETH.

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BlackRock’s BUIDL Fund Triples in Value with the Tokenization Wave

BlackRock’s Ethereum-based tokenized money market fund has more than tripled in value over the past three weeks, approaching the $2 billion mark, during a period of rising demand for safe digital assets.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) saw an increase of more than three times, rising from $615 million to $1.87 billion in the past three weeks. This data is based on Token Terminal data shared by Leon Waidmann, research director at the Web3 intelligence platform Onchain Foundation.

Waidmann shared in a post on March 26, “The BUIDL fund’s TVL exploded from $615M to $1.87B in just 3 weeks. The tokenization wave is hitting faster than most realize.”

BUIDL Fund Reflects Growing Institutional Interest in Tokenization

BlackRock’s BUIDL fund is part of the broader real-world asset (RWA) tokenization sector, which involves the tokenization of financial products and tangible assets such as real estate and valuable artworks on the blockchain, increasing investor access to and trading opportunities for these assets.

The surge in BlackRock’s fund reflects growing institutional demand for tokenized real-world assets, amid a reduction in regulatory uncertainty. Edwin Mata, co-founder and CEO of Brickken, stated, “The US is witnessing a significant shift toward a more crypto-friendly regulatory environment,” and added:

“The SEC has recently concluded several investigations without enforcement actions, including those involving Immutable, Coinbase, and Kraken.”

BlackRock launched the BUIDL fund in March 2024 in partnership with tokenization platform Securitize. Michael Sonnenshein, COO of Securitize, said that the fund aims to “make offchain assets less boring and more interesting.”

RWAs hit a new all-time high of over $17 billion on February 3, following Bitcoin’s drop below $100,000.

RWA Value Approaches $20B, New Records Expected in 2025

The total value of on-chain RWAs is now just 0.5% away from surpassing the $20 billion mark, with a total cumulative value of $19.57 billion. RWAs may rise to new all-time highs in 2025 as they attract investor interest amid Bitcoin’s lack of momentum. Alexander Loktev from P2P.org said, “Given the increasing participation of major financial institutions, particularly BlackRock and JPMorgan in tokenization, I believe the TVL could reach $50 billion.”

Loktev also pointed out that TradFi (traditional finance) institutions are “starting to view tokenized assets as a serious bridge to DeFi.”

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