Rationale: Traditional finance controls $54T in assets but remains completely locked out of DeFi's high yields. Institutional investors are stuck earning 2-5% in conventional products while decentralized protocols generate substantially higher returns.
Market Constraints:
→ 9% of Bitcoin already sits in ETFs, proving institutional ETF demand exists→ Crypto ETFs grew 6x faster than gold ETFs, but capture 0% DeFi yield→ No regulated product currently bridges the gap between TradFi capital and DeFi yields→ While crypto hedge funds can access DeFi yields, they serve only 1% of the market due to regulatory limitations and risk transparency issues
Market Opportunity: This fundamental disconnect between where the capital sits ($54T TradFi) and where the yields are generated ($2T DeFi) represents a trillion-dollar market opportunity.
Watch CEO of Blackrock's perspective on crypto evolve from 2017 to today: From "an index of money laundering" to a system that "eliminates all corruption."