Investors must adapt to the rapid introduction of new products and services in the marketplace. Nothing is easy in life. Yeah, some they will find appealing and choose to engage with, while others may not align with their objectives.
It is important for investors to conduct thorough research and make informed decisions based on their findings. In case you were wondering, I see cryptocurrencies as a valuable tool for global diversification.
Here is an insightful section from a full commentary by a partner on the state of the cryptocurrency and digital assets markets. They are definitely more knowledgeable than I am about developments in the digital assets market.
The start of 2024 was exciting for macro traders and crypto enthusiasts. The total cryptocurrency market capitalization at the end of the quarter reached USD2.75trn up from USD1.77trn at year-end in 2023.
The liquid token market reached its local height of USD2.89trn in mid-March as Bitcoin climbed above USD70k. Days after February month-end, Bitcoin reached a new all-time high for the first time since November 2021 as steady ETF inflows continued the historical streak of Bitcoin dominance.
The total crypto-dedicated hedge fund market grew from USD16.3bn in December 2023 to USD21.0bn in value for the first time since October 2022. Liquid Strategies continue to grow. Fundamental strategies grew from USD12.5bn to USD16.1bn in total AUM. Market Neutral funds jumped from USD1.7bn in total AUM to USD2.1bn in total AUM and Quant Directional strategies grew from USD2.0bn to USD2.8bn in Q1 2024.
Venture Firms raised USD1.19bn in Q1 2024 across 22 funds. Considering historical quarterly totals, Q1 2024 was on average for the total number of funds raised. Through Q1 2024, USD2.62bn was invested across 631 deals.
BlackRock has recently launched their first on-chain fund called BUIDL (“The BlackRock USD Institutional Digital Liquidity Fund”) represented as a token on Ethereum and backed by US Treasuries. BUIDL seeks to offer a stable value of USD1 per token and pays daily accrued dividends directly to investors’ wallets as new tokens each month.
The Fund invests 100% of its total assets in cash, US Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain. Fund participants will also have flexible custody options allowing them to choose how to hold their tokens.
Since launching on March 21, BUIDL has amassed USD375 million of assets representing nearly 30% of the tokenized U.S. treasury market. BlackRock and Franklin Templeton are leading the charge in the tokenized U.S. treasury market, bringing RWAs (“real-world assets”) front and center. The world of centralized finance is integrating with decentralized finance.