- BlackRock plans tokenized ETFs after Bitcoin fund growth, expanding blockchain adoption.
- Tokenization may extend trading hours, global access, and ETF use as crypto collateral.
- Regulatory hurdles persist as Nasdaq, banks, and U.S. policymakers test blockchain markets.
BlackRock is preparing to expand its blockchain footprint by tokenizing exchange-traded funds (ETFs), a move that builds on the surge in demand for its iShares Bitcoin Trust.
The world’s largest asset manager said the push aims to make financial products more efficient and accessible through blockchain-based infrastructure.
Tokenized ETFs Target Real-World Assets
The company is developing tokenized ETFs tied to traditional assets, including stocks, that could be issued as blockchain tokens. Tokenization would allow trading outside of Wall Street hours, simplify global market participation, and create new ways to use ETFs as collateral across crypto networks.
The initiative builds on BlackRock’s existing work with tokenized money market funds. Its USD Institutional Digital Liquidity Fund (BUIDL), launched in March 2024, has grown to $2.2 billion in assets across Ethereum, Avalanche, Aptos, and Polygon. Meanwhile, the iShares Bitcoin Trust (IBIT) has surpassed $10 billion in assets under management within its first year, making it one of the fastest-growing spot Bitcoin ETFs on record.
Related: BlackRock’s IBIT Bitcoin ETF Crushes All Competitors In Daily U.S. Fund Inflows
Institutional Push Gains Momentum
BlackRock’s strategy aligns with a broader industry push to bring tokenization into mainstream finance. JPMorgan has described the trend as transformative for the $7 trillion money market industry. Institutions such as Goldman Sachs and BNY Mellon are already testing blockchain-based settlement systems.
BlackRock has also trialed settlement infrastructure through JPMorgan’s Onyx platform, now rebranded as Kinexys. In his 2025 investor letter, CEO Larry Fink reiterated his view that “every financial asset can be tokenized,” highlighting efficiency and speed as the biggest benefits.
Regulatory and Market Challenges
Despite growing momentum, tokenized ETFs face significant hurdles. Traditional ETFs rely on trusted intermediaries for settlement, while blockchain assets settle instantly and trade around the clock. Bridging the two systems remains a challenge for regulators, custodians, and exchanges.
Policy signals are beginning to shift. The Trump administration has voiced support for sandbox programs to test blockchain in U.S. markets. Nasdaq has also filed with the SEC to enable trading of tokenized stocks, potentially setting up the first large-scale test of tokenization in U.S. equities.
Related: BlackRock’s Presence at Ripple’s Event Sparks Speculation on XRP ETF Future
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Source: https://coinedition.com/blackrock-tokenized-etfs-bitcoin-fund-success/
