"Tokenisation of ETFs will be key to mainstreaming digital assets"

Uk Jin

Summary

Institutional investors said they view the tokenisation of ETFs as central to expanding the digital-asset market.
97% of respondents assessed that major managers such as BlackRock’s tokenisation of ETFs is important, and 70% said they expect broader tokenisation across various asset classes within the next three years.
Private equity (PE) was cited as the asset class with the greatest tokenisation potential, and it was assessed that entry by major asset managers is boosting liquidity and credibility, with tokenisation establishing itself as real financial-market infrastructure.

Forecast Trend Report by Period

A view has emerged that institutional investors see the "tokenisation of exchange-traded funds (ETFs)" as central to expanding the digital-asset (cryptocurrency) market.

On the 1st (Korea time), Crissa McFarlane, CEO of Patientory, wrote in a Forbes contribution that "according to the results of a global survey by Nickel Digital Asset Management, institutional investors expect the trend of issuing and distributing regulated financial products in the form of blockchain-based tokens to gather pace in earnest".

In the survey, 97% of respondents said the "tokenisation of ETFs" being pursued by major asset managers such as BlackRock would be important for expanding the digital-asset market. Of these, 32% rated it as "very important". In addition, 70% forecast that the tokenisation of investment funds and a range of asset classes would expand over the next three years.

By asset class, private equity (PE) was cited as the area with the greatest tokenisation potential, followed by bonds and listed equities.

McFarlane assessed that "once major asset managers enter the tokenisation market in earnest, both liquidity and credibility could rise" and that "tokenisation is increasingly moving beyond theory and establishing itself as real financial-market infrastructure".