Bitcoin News Today: Avalanche Secures Second-Largest AUM in BlackRock’s BUIDL Fund

Avalanche (AVAX) has solidified its position in the institutional blockchain landscape by becoming the second-largest chain by assets under management (AUM) in BlackRock’s BUIDL fund. This marks a significant milestone for the platform and reinforces Avalanche’s growing reputation in the Real-World Assets (RWA) sector [1].

The BUIDL fund, launched by the world’s largest asset manager, is designed to tokenize traditional financial instruments such as bonds and securities on blockchain platforms. With AVAX now holding the second-largest share of AUM in the fund, it highlights the protocol’s ability to handle high-value, institutional-grade transactions with speed and efficiency [1]. The move underscores a broader trend of institutional investors seeking diversified exposure beyond Bitcoin and Ethereum, with Avalanche’s infrastructure increasingly viewed as a viable and scalable alternative for smart contract execution and DeFi activities [2].

This institutional backing reflects confidence in Avalanche’s performance metrics, including its high throughput, low transaction fees, and compatibility with Ethereum-based tools. These attributes have attracted a growing number of institutional participants, aligning with BlackRock’s strategy to offer structured access to a range of digital assets while managing risk and liquidity [2].

The inclusion of AVAX in the top-tier chains of the BUIDL fund also signals a shift in capital allocation dynamics across layer-1 networks. While Bitcoin ETFs have seen recent outflows, institutional capital continues to flow into diversified blockchain portfolios, pointing to an evolving market moving beyond speculative trading into more structured investment models [3]. The strategic placement of AVAX in BUIDL suggests that the broader market is beginning to recognize the maturing infrastructure and clearer regulatory frameworks surrounding certain blockchain platforms.

This development is further supported by recent regulatory momentum in the U.S. market, including ongoing discussions around allowing crypto assets in 401(k) plans. Such legislative shifts could drive increased institutional interest in blockchain-based investment vehicles, especially those leveraging platforms like Avalanche [4]. As more institutional players enter the space, the role of layer-1 networks in facilitating scalable and compliant blockchain financial products is expected to grow.

BlackRock’s continued investment in AVAX-based infrastructure underscores the fund’s long-term commitment to digital assets and highlights the expanding role of blockchain in institutional finance. With AVAX now a key player in the BUIDL fund, the platform is well-positioned to challenge Ethereum’s dominance in the RWA space and further cement its role in the future of institutional blockchain adoption [1].

Source:

[1] title: News - OneBitco (https://onebitco.com/press)

[2] title: Trump to allow crypto in 401(k) plans for US workers (https://blockchair.com/news/trump-to-allow-crypto-in-401k-plans-for-us-workers-white-house--57d118446d)

[3] title: Michigan State Pension Triples Bitcoin ETF Exposure (https://decrypt.co/333707/michigan-state-pension-triples-bitcoin-etf-exposure/)

[4] title: Bitcoin ETFs Suffer Fourth Day in the Red as Ethereum (https://decrypt.co/333760/bitcoin-etfs-fourth-day-outflows/)