BlackRock’s Tokenized Fund News Sends Hedera (HBAR) Soaring 100%, The Reason May Surprise You
April 24 2024 - 10:00PM
NEWSBTC
In a surprising turn of events, the native token of the
decentralized ledger platform Hedera, HBAR, experienced a
significant price surge of over 100% during the early hours of
Tuesday. Starting from a low of $0.0875, HBAR skyrocketed to reach
the $0.1821 mark by Wednesday. The sudden surge was triggered
by the news of BlackRock’s tokenized fund, BUIDL, which generated
high expectations among HBAR investors regarding a potential
collaboration between the prominent asset manager and the Hedera
protocol. Not Directly Connected To Hedera? Launched by BlackRock
in March 2024, BUIDL operates as a tokenized fund on the Ethereum
blockchain, providing US dollar yields through tokenization.
Related Reading: Newbie Bitcoin Whales Hold 2x As Much As Veterans:
What’s Behind This Trend? Initially, an announcement led to
confusion among investors, who mistakenly believed that BlackRock
would directly tokenize the fund on the Hedera network. This
misunderstanding triggered a significant surge in the HBAR price.
Upon closer examination of the announcement, it became clear that
BlackRock and Hedera had no direct connection, although the initial
reaction to the news was noteworthy. Crypto analysts, who use
the pseudonym “CrediBull” on social media site X (formerly
Twitter), shed light on the situation, emphasizing that explicit
permission from BlackRock was unnecessary to list tokenized
versions of their funds. It was not a deliberate decision by
BlackRock to tokenize on Hedera; rather, an existing platform on
the network took the liberty of tokenizing one of BlackRock’s
funds. However, for the analyst, the fact that a platform on Hedera
was among the first to tokenize a BlackRock fund reflects the
platform’s leadership in the space. Analyst Clarifies Misconception
Further examination reveals that Archax, the company behind the
tokenized BlackRock fund on Hedera, is a portfolio company of ABRDN
Investments, the largest asset manager in the UK, with
approximately $500 billion in assets under management (AUM).
Additionally, CrediBull emphasizes that BlackRock happens to be the
fourth-largest shareholder of ABRDN. Notably, around ten months
ago, Archax tokenized one of ABRDN’s money market funds, preceding
their launch of the BlackRock fund. An interview by the Head of
Digital Assets at ABRDN clarifies their involvement in the
tokenization process on Archax. A “distribution agreement” was
signed permitting the tokenization to proceed. If a similar
agreement were reached with BlackRock, it would imply the asset
manager’s endorsement of the product. Related Reading: Analysts
Identify Key Scenario For Bitcoin Hitting $100,000 Ultimately, the
interview with the head of digital assets at ABRDN underscores the
fact that significant players are utilizing and contributing to the
growth of Hedera behind the scenes. Following the clarification of
the situation, the price of HBAR has retraced to $0.1199.
Nevertheless, it remains up 8% over the past 24 hours and has
recorded an impressive gain of nearly 60% in the past seven
days. CoinGecko data highlights a substantial surge in HBAR’s
trading volume, which has increased by over 1,100% in the past few
days. This surge in trading volume indicates the widespread
confusion sparked by the initial news announcement. Featured image
from Shutterstock, chart from TradingView.com
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