Behind the $1B tMMF Exit: What allocators are telling us?
- Harvey
- Aug 5
- 5 min read
While policymakers around the world are making pro-crypto pivots worth celebrating, a quiet shake-up just hit the heart of the tokenized money market fund (tMMF) space.
The entire space saw close to $1B outflow in the past 30 days. Even BlackRock’s BUIDL - the largest tokenized MMF in existence - has seen over $400M in outflows in just past two weeks, wiping out 14% of its AUM. That scale of redemption is anything but normal.
What’s going on? One word: rotation.
If you are new to tokenized MMFs, know this - they are likely the first institutional capital markets product that will scale into trillions driven by its killer use case: collateral mobility. Here are 3 case studies.
From State Street to Fidelity, nearly every top asset manager is either live or entering this space. BlackRock had the early lead with $2.9B in AUM - until two weeks ago.
In this week’s research note, I’ll take you behind the scenes of the BUIDL unwind:
Who pulled money
How much they pull
Why they rotated out
And what it means for the evolving market structure of tMMFs
Let’s dive in.
Who pulled money?
Between July 17th and July 22nd, the total AUM of BUIDL dropped by a staggering $400M or 14% of its $2.9B AUM.
For those of you who are members of the Insiders Club, you would have been familiar with the deep dive into the AUM growth story of the BUIDL. For those who aren’t familiar, here is the context: BUIDL got to become the biggest tMMF by locking up two of the largest sources of crypto native capital pools onchain:
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