Tokenized Alternative Funds Jump 47% to $1.7B in 30 Days
News Summary
Tokenized institutional alternative funds (IAF) surged 47% in the last 30 days, reaching a total value of $1.74 billion, according to data from real-world asset (RWA) tokenization tracker RWA.xyz. All protocols except Libre Capital saw percentage increases, with Centrifuge leading the growth by expanding its market cap by 252% to $704 million, giving it a 40.4% market share for IAFs. Centrifuge's total value locked (TVL) surpassed $1 billion, including nearly $400 million in tokenized US Treasury products, joining BlackRock's BUIDL fund and Ondo Finance in reaching the $1 billion RWA milestone. Securitize followed with $652 million across 14 tokenized IAFs, accounting for 37.5% of the market. While tokenized IAFs increased in value, monthly active addresses dropped by over 50%, yet the number of holders increased by 13.5%, suggesting institutions or professional investors may be consolidating funds and new investors are signaling long-term confidence. Ethereum remains the most dominant blockchain for tokenized IAFs, hosting $1 billion in total value, which is more than half of the entire market. Mantle and ZKsync Era followed with $218.8 million and $214.8 million, respectively, while Solana accounted for $135.2 million.
Background
Institutional alternative funds (IAFs) are professionally managed investment vehicles that allocate capital into asset classes outside of traditional stocks and bonds, including hedge funds, private equity, private credit, venture capital, and assets like real estate or infrastructure. Tokenizing these funds brings them to the blockchain, allowing them to access benefits including faster settlement, wider investor access, and greater transparency. Protocols bringing such funds onto blockchains highlight a growing demand for real-world asset (RWA) tokenization among traditional financial institutions.
In-Depth AI Insights
What are the true drivers behind the significant capital inflow despite declining active addresses, and what are the implications for market structure? - This phenomenon strongly suggests that institutional and professional investors are dominating the growth of tokenized alternative funds. The reduction in active addresses concurrent with an increase in holders implies a consolidation of larger capital into fewer addresses, rather than a broad influx of retail investors. - This could lead to a market with deeper liquidity but fewer participants, creating a