BlackRock, the world's largest asset manager, which has been making waves in the digital asset space, is reportedly looking into bringing its exchange-traded funds onchain, according to Bloomberg.
This potentially includes tokenizing funds related to “real-world assets,” including stocks, Bloomberg senior crypto reporter Olga Kharif wrote Thursday, citing unnamed people familiar with the matter. The move would be subject to "regulatory considerations," Kharif noted.
The New York-based firm offers several crypto-related products, including the largest ETFs tracking Bitcoin and Ethereum, the iShares Bitcoin Trust and iShares Ethereum Trust, with $55 billion and $12.7 billion in cumulative inflows, respectively. Both funds reached $10 billion in assets under management in one year or less, two of only three such products to hit that milestone.
To a lesser-known degree, BlackRock also offers “thematic” funds like the iShares Blockchain and Tech ETF, which invests in an index of crypto-related companies, but not tokens directly.
The move comes amid a spike in interest in tokenization, seemingly across Wall Street. Earlier this week, for instance, Fidelity quietly rolled out a blockchain-based version of one of its Treasury money market funds, which is now tethered to the Fidelity Digital Interest Token. Meanwhile, Nasdaq is seeking U.S. Securities and Exchange Commission approval to trade tokenized securities alongside traditional stocks.
Of note, BlackRock has direct experience issuing onchain products. The asset manager offers the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which became the first tokenized fund to cross the $1 billion mark in March, and now accounts for over $2 billion in managed assets, according to RWA.xyz data.
Tokenized equities, including stocks and ETFs, are still a nascent market despite a recent uptick in interest. Several major players, including Robinhood and Kraken, are offering onchain versions of popular U.S. equities like TSLA and APPL. However, according to RWA, there is less than $500 million worth of these assets in circulation.
BlackRock CEO Larry Fink has stated numerous times that he predicts all financial assets will be tokenized. The firm's crypto AUM reached $50 billion in the first quarter of 2025, with $3 billion in net inflows that quarter.
That said, Bloomberg ETF analyst Eric Balchunas said on X that while tokenization may lead to minor improvements in the "back office (plumbing) of TradFi," he remains doubtful the trend will dramatically reshape consumer appetites.
"What is implied tho by the hype is getting actual investors to sell $VOO et al and buy a token a la the way ETFs stole from [mutual funds]," he wrote. "I just don't see it. I don't see the value add for the consumer to get them to switch, just as I didn't with DI and I was totally right about that."
"I think it makes sense to tokenize stuff for ppl who are on chain, just as the ETF made it on chain stuff easier for brokerage ppl. But the on chain ppl are such a small fraction of the global money which is why the hype sometimes feels too heavy for the impact (at least medium term)," Balchunas added in a follow-up comment.
