As BlackRock expands its tokenization suite, anchored by the BUIDL Fund, Ethereum is gaining a strategic boost. Market watchers point to the tokenized treasury market expansion as a driver of renewed interest in Ethereum’s role. The combination of institutional usage and real-world asset (RWA) tokenization has prompted a revised Ethereum price prediction outlook.
BlackRock’s BUIDL Expansion: Institutional Voice on Ethereum
In March 2024, BlackRock launched the USD Institutional Digital Liquidity Fund (BUIDL), a $3 billion tokenized money market fund built on Ethereum. Since then, it has had vaulting growth, capturing approximately 42% of the tokenized treasury pool, equating to $2.47 billion in on-chain assets.
In mid-June 2025, BUIDL became collateral-ready on major exchanges, the first token of its kind to qualify for trading margin. That step brings Ethereum from experimental DeFi utility to foundational market infrastructure.
Tokenized U.S. Treasuries: A $7 B Market with Ethereum at the Core
Tokenized Treasury assets now exceed an estimated $7 billion, with Ethereum accounting for over $4.3 billion, roughly 70% market share. BUIDL is the single largest asset, holding 40–45% control of Ethereum’s RWA pool.
This market growth (up nearly 400% in 2024) brings stable, yield-bearing capital and substantial on-chain liquidity to Ethereum, enhancing its valuation case.
Institutional Trait Shift: Ethereum as a Collateral Layer
The institutional infusion has made Ethereum more than a programmable chain; rather, it’s becoming financial infrastructure. BUIDL’s acceptance as collateral by major trading platforms means institutions can now deploy Ethereum assets directly in margin accounts, bridging TradFi and DeFi functionality.
Tokenized treasuries supported by Ethereum infrastructure not only provide yield but also capitalize on DeFi synergies, unlocking capital efficiency. Analysts have noted that this shift could increase demand for Ether by as much as 2–3% annually, expanding issuance potential and reinforcing Ethereum’s store-of-value narrative.
Ethereum Price Outlook: Predicted Upside from RWA Growth
Institutional on-chain data and inflow tracking point to a changing outlook for Ethereum:
- Ethereum price prediction models now incorporate RWA inflows, forecasting ETH prices in the US$4,500–5,500 range for end‑2025, assuming continued growth in collateral usage and DeFi integration.
- The tokenized Treasury market’s scale reduces ETH volatility while deepening liquidity pools, cushioning price drawdowns.
- As RWA balance tops $7 billion, projections estimate ETH demand will surpass 10% YOY, driven by ecosystem expansion and institutional onboarding.
What to Monitor: Catalysts and Key Metrics
- RWA Growth Chart: Ethereum’s RWA total TVL surpassing $5 billion in early 2025 is a bullish signal; further expansion may propel ETH value.
- Collateral Entries on Platforms: Monitoring collateral listings of BUIDL-like assets on institutional venues indicates deeper adoption patterns.
- Yield vs. Fees Curve: Comparing yield returns from Treasury-backed assets to gas and staking yields offers insights into Ethereum’s revenue composition.
- Institutional Inflows: Tracking inflows from major fund managers shows sentiment direction. BUIDL topping $1.8 billion in three weeks suggests a tipping point.
- Blockchain Interoperability: BUIDL’s launch on nine chains led by Ethereum positions ETH as an RWA hub; further integration could mirror token demand.
Risks & Considerations
- Regulatory Delays: Tokenized Treasury assets rely on RWA infrastructure; auditability risks or compliance enforcement could stall momentum.
- Market Concentration: Ethereum holds the majority share; any shift in token platform could affect ETH inflows.
- Macro Variability: Rising interest rates and bond market shifts could compress yields on Treasuries, affecting demand for tokenized equivalents.
- Smart Contract Risks: While BUIDL is institutional-grade, it still depends on Ethereum security and smart contract integrity.
Conclusion
BlackRock’s BUIDL fund is no longer a tokenized novelty; it has grown into institutional-grade infrastructure anchored on Ethereum. With Ethereum price prediction models reflecting tokenized treasury market expansion and collateral usage, the outlook for ETH is now structurally bullish.
By raising total RWA TVL to nearly $7 billion and demonstrating real-world utility through collateral functions, the BUIDL build brings layering to Ethereum’s value proposition. For institutional players and DeFi architects alike, Ethereum is transforming from a code base to a financial backbone, shaping ETH’s future through integration and scale.
