Golden Finance reported that Yi Lihua, the founder of LD Capital, posted on the X platform, elaborating on another key reason for the bullish trend of ETH. Previously, BlackRock launched the BUIDL, a generation of tokenized money market fund. This fund uses the Treasury bonds and repurchase agreements it holds as its underlying assets. Currently, its scale is approximately 2.9 billion US dollars, with over 92%, or about 2.68 billion US dollars, deployed on Ethereum.
It is worth noting that BlackRock has a huge amount of short-term bonds and similar assets under its custody, approximately 1 trillion US dollars. In contrast, the current market penetration rate of BUIDL funds is less than three thousandths. Ethereum, as a proof of Stake (POS) chain, has certain security risks. In June this year, the number of Ethereum staked reached 34.65 million, approaching 30% of the circulating supply. Based on this calculation, the total circulating supply of Ethereum is approximately 115.5 million. If an attacker wants to launch an attack on Ethereum, they need to hold 34% of the staking rights, which is roughly equivalent to 10% of the circulating market value of Ethereum. After calculation, the cost of the attack is only 31.5 billion US dollars. However, the current scale of BlackRock’s existing RWA on Ethereum has reached 2.68 billion US dollars, and there is still huge growth potential in the future.
Yi Lihua believes that as the scale of RWA continues to rise, the price of Ethereum must also increase accordingly; otherwise, it will be impossible to open up the market value space of assets issued on the chain. Blackrock has issued an Ethereum ETF and continuously increased its holdings. The underlying intention might be to push up the price of Ethereum. After the price of Ethereum rises, the possibility of its staking ETF being approved increases. As a result, BlackRock can increase its control ratio in the staking Treasury, ultimately enhancing the security of its deployment of RWA assets on Ethereum.
As early as May 27th, it was reported that Trend Research, a subsidiary of Yilihua, established a position in ETH at $1,400 and published a bullish research report at $1,800, and has always been firmly optimistic about the prospects of ETH and its blue-chip ecosystem assets. Yi Lihua also emphasized, “We have always been bullish on and increased our positions in ETH, maintaining consistency between words and deeds.” This time, Yi Lihua’s interpretation of BlackRock’s relationship with Ethereum has provided the market with a new perspective for thinking. The subsequent price trend of ETH and its development in the RWA field have attracted much attention.
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