BlackRock’s Tokenized Fund News Causes Hedera (HBAR) to Surge 100%, Catching Investors Off Guard
In an unexpected turn of events, Hedera’s native token, HBAR, experienced a remarkable price surge of over 100% during the early hours of Tuesday. Starting from a low of $0.0875, HBAR skyrocketed to reach $0.1821 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 renowned asset manager and the Hedera protocol.
However, upon closer examination, it became clear that there was no direct connection between BlackRock and Hedera, despite the initial misunderstanding that caused the surge. Cryptocurrency analyst, known by the pseudonym “CrediBull,” clarified that explicit permission from BlackRock was not necessary to list tokenized versions of their funds. It was an existing platform on the Hedera network that took the initiative to tokenize one of BlackRock’s funds, showcasing Hedera’s leadership in the space.
Further investigation revealed 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). BlackRock happens to be the fourth-largest shareholder of ABRDN. This information, along with an interview with the Head of Digital Assets at ABRDN, clarified their involvement in the tokenization process on Archax.
After the clarification, HBAR’s price retraced to $0.1199. However, it still remains up 8% over the past 24 hours and has recorded an impressive gain of nearly 60% in the past seven days. The surge in HBAR’s trading volume, which increased by over 1,100% in the past few days, indicates the widespread confusion sparked by the initial news announcement.
It is worth noting that the article is for educational purposes only, and investors are advised to conduct their own research before making any investment decisions.