Crypto News: Tokenized Alternative Funds Surge 47% to $1.7B as Ethereum Dominates With $1B Share

Key Takeaways:Tokenized institutional alternative funds (IAFs) grew 47% in the past 30 days, reaching $1.74B.Ethereum leads with $1B in tokenized IAFs, accounting for over half the market.Centrifuge grew 252% to $704M, surpassing $1B in total tokenized assets including U.S. Treasuries.Securitize, Superstate, and OnRe also recorded significant growth in tokenized fund offerings.Tokenized institutional alternative funds (IAFs) surged 47% in the past month, reaching $1.74 billion in value, according to data from RWA.xyz. The rapid growth underscores rising demand for blockchain-based exposure to hedge funds, private credit, venture capital, and other institutional-grade investments.Centrifuge Leads With 252% GrowthCentrifuge led the expansion, with its IAF market cap soaring 252% to $704 million, giving it a 40.4% market share. Alongside nearly $400 million in tokenized U.S. Treasuries, Centrifuge’s total value locked (TVL) now surpasses $1 billion — placing it in the same league as BlackRock’s BUIDL fund and Ondo Finance in crossing the billion-dollar tokenization milestone.Securitize ranked second with $652 million across 14 tokenized IAFs, accounting for 37.5% of the market. Other notable players include:Superstate: $206M in tokenized IAFsOnRe: $102M in tokenized IAFsWhat Are Tokenized Institutional Alternative Funds?Institutional alternative funds (IAFs) are managed investment vehicles allocating capital into non-traditional asset classes such as hedge funds, private equity, private credit, venture capital, real estate, and infrastructure.Tokenizing these funds brings them on-chain, enabling faster settlement, broader investor access, and greater transparency. This innovation highlights the growing convergence of traditional finance (TradFi) with decentralized finance (DeFi).Investor Trends Show Long-Term ConfidenceWhile IAF value surged, RWA.xyz data revealed shifting investor behavior:Monthly active addresses dropped by 50% to 21,867.Number of holders increased 13.5% to 114,922.This suggests consolidation among institutional players while new investors accumulate and hold, signaling long-term conviction in tokenized fund adoption.Ethereum Remains the Leading Network for Tokenized IAFsEthereum dominates the tokenized IAF market with $1 billion in total value, representing more than half of the entire sector.Other networks trail behind:Mantle: $218.8MZKsync Era: $214.8MSolana: $135.2MPlume: $59.2MAvalanche: $41.2MThe data underscores Ethereum’s continued role as the preferred settlement layer for tokenized real-world assets (RWAs), even as competing blockchains expand their presence.