In a groundbreaking collaboration, tokenization leader Securitize has partnered with the decentralized finance protocol Mantle to launch an innovative institutional fund aimed at providing substantial yields on a diverse range of cryptocurrencies. The newly announced Mantle Index Four (MI4) Fund endeavors to function similarly to a traditional index fund, offering institutions exposure to key digital assets, including Bitcoin (BTC), Ether (ETH), and Solana (SOL).
With the intent to enhance returns, the MI4 Fund incorporates liquid staking tokens, notably Mantle’s mETH, Bybit’s bbSOL, and Ethena’s USDe. This progressive approach reflects the growing trend among both retail and institutional investors to diversify their portfolios with cryptocurrencies, especially Bitcoin, as a hedge against increasing macroeconomic pressures.
Timothy Chen, Mantle’s global head of strategy, stated that the fund aspires to become the “de facto SPX or S&P 500 of crypto.” This ambitious initiative aligns with the ongoing push for institutional adoption in the burgeoning cryptocurrency market. With a keen focus on technological advancements, Mantle aims to create a robust and user-friendly platform for investors seeking to generate yield on their digital assets.
The MI4 Fund, with its innovative liquid staking products, provides an estimated Annual Percentage Rate (APR) of approximately 3.78% for holders of Mantle Staked Ether (mETH), presenting a favorable opportunity in a saturated market. As of April 2023, the protocol has secured a total value locked (TVL) exceeding $680 million, highlighting its growing significance within the cryptocurrency ecosystem.
In the narrower realm of tokenization, Securitize remains a dominant player, controlling around 71% of the market share for tokenizing real-world assets (RWAs) as of April 2023. Their largest affiliated fund, the BlackRock Institutional Digital Liquidity Fund (BUILD), manages assets amounting to more than $2.5 billion, emphasizing the increasing interest and demand for tokenized investment vehicles among institutional players.
As the cryptocurrency market continues to evolve, the demand for tokenized funds is expected to rise significantly. Securitize’s co-founder and CEO, Carlos Domingo, has indicated that institutional investors are leaning more towards tokenization to enhance operational efficiency, reduce friction, and improve liquidity. Through strategic collaborations like the one with Mantle, the future of institutional investment in digital assets looks promising and poised for growth.
