BlackRock has made a significant move by integrating its tokenised fund with Avalanche. This comes as part of a broader strategy to bridge traditional finance with decentralised protocols.
At the same time, BlackRock continues to dominate the spot Bitcoin ETF market, increasing its BTC holdings even as some peers begin to offload.
These developments suggest a deepening commitment to digital assets through both tokenisation and Bitcoin exposure, reinforcing the firm’s dual strategy of institutional adoption and on-chain integration.
sBUIDL Fund Joins Avalanche DeFi
BlackRock has integrated its tokenised U.S. Treasury fund, sBUIDL, with Euler on the Avalanche network.
This marks the first time BlackRock has allowed one of its digital funds to be used directly in decentralised finance protocols. The sBUIDL token, created by Securitize, is backed 1:1 by BUIDL, BlackRock’s $3 billion fund holding short-term Treasuries and repurchase agreements.
Users can now lock BUIDL, mint sBUIDL, and use it as collateral for lending and borrowing within the Avalanche ecosystem.
This integration was facilitated by Re7 Labs and also uses Chainlink’s data feeds for pricing reliability and security. According to Avalanche, this setup not only maintains full redeemability but also gives sBUIDL holders access to AVAX rewards for borrowing USDC or AUSD.
The result is an on-chain financial instrument that offers daily yield while remaining compatible with DeFi use cases. BlackRock’s approach here is not to replace traditional finance but to enhance its reach through blockchain infrastructure.
The fund aims to maintain a stable value of $1 per token while distributing daily dividends directly to users’ wallets. Avalanche claims that lower fees on its network compared to others also make this deployment more efficient.
With its EVM compatibility, low transaction costs, and fast settlement, Avalanche provides a suitable environment for institutions such as BlackRock to explore new formats for asset distribution and liquidity.
The move follows a broader trend of institutions testing tokenisation on Avalanche, including names like Citi, J.P. Morgan, and KKR.
Bitcoin ETF Inflows Strengthen BlackRock’s Lead
While many firms are experiencing net outflows in their Bitcoin ETFs, BlackRock continues to show consistent growth. As of May 14, 2025, the iShares Bitcoin Trust (IBIT) held 627,986 BTC, up by 2,250 BTC in just one day and 7,067 BTC over the past week.
This is the largest single-day and weekly net inflow among all U.S. Bitcoin ETFs, underlining BlackRock’s dominant position. In contrast, other funds such as Grayscale’s GBTC and Fidelity’s FBTC show much smaller gains or even net outflows.
This trend indicates growing investor preference for BlackRock’s structure and management approach, possibly due to its reputation and consistent tracking of underlying assets.
While ARK and Bitwise have reported minor inflows, and Grayscale continues to face weekly losses, BlackRock seems to be winning the competition for institutional capital in the spot Bitcoin ETF space.
The total BTC held by all funds now exceeds 1.17 million BTC, with IBIT alone accounting for more than half of the 7-day net inflow across all products.
The numbers show that BlackRock is not only expanding its tokenised offerings on-chain but also increasing its presence in the traditional ETF market tied to crypto. This twin-pronged strategy reinforces its leadership in the asset management sector.
By maintaining exposure to both real-world assets and decentralised financial infrastructure, BlackRock is positioning itself to capture value from multiple sides of the digital asset landscape.
Investors are clearly responding, with flows into its products reflecting sustained confidence in its direction.
Conclusion
BlackRock’s integration with Avalanche through sBUIDL and its continued leadership in Bitcoin ETF inflows reflect a clear and coordinated strategy.
The firm is bridging traditional assets and on-chain finance without compromising stability or investor trust.
By moving deliberately into decentralised networks while growing its exposure to core crypto assets like Bitcoin, BlackRock is shaping the institutional path into tokenisation. For now, it seems they are doing so with both control and momentum.