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- BlackRock is pushing tokenized ETFs after the Bitcoin trust’s success, aiming for global reach and off-hours trading.
- Regulatory hurdles still hang heavy as the tokenized asset market lags far behind trillion-dollar ETFs.
BlackRock is preparing to expand its blockchain strategy by tokenizing exchange-traded funds, according to a Bloomberg report on September 11. The move comes after the strong uptake of its spot Bitcoin ETF and the BUIDL tokenized money market fund.
The company’s iShares Bitcoin Trust, launched in 2024, quickly crossed $10 billion in assets under management within a year. Its BUIDL fund, introduced in March 2024, has already gathered more than $2 billion.
Tokenized ETFs could open access to global investors and enable trading outside regular Wall Street hours. They may also serve as collateral in crypto networks, potentially broadening their role in financial markets. Still, regulators face challenges reconciling blockchain transactions with traditional clearinghouse-based ETF settlements.
JUST IN: BlackRock plans to tokenize ETFs following success with $BTC fund. pic.twitter.com/yQD0E4VjpX
— Whale Insider (@WhaleInsider) September 11, 2025
BlackRock Pushes ‘Every Asset Can Tokenize’
The market for tokenized assets is still small, worth about $29 billion, compared to the $8 trillion U.S. ETF market, according to data from rwa.xyz. Still other firms, though, are already building tokenized offerings.
Trading platforms like Kraken and Robinhood have tested tokenized equities on overseas exchanges, while Nasdaq has submitted paperwork to the Securities and Exchange Commission in order to permit tokenized stock trading on its exchange. If approved, it would be a first for U.S. equity markets.
BlackRock CEO Larry Fink has been a vocal proponent for tokenization. Writing in his 2025 investor letter, he said, “Every financial asset can be tokenized” to speed settlement and improve efficiency. This represents a company’s continued focus on blockchain-driven infrastructure.
Tokenized ETFs Face Hurdles Despite Momentum
U.S. regulators are looking at sandbox programs under the Trump administration to test out blockchain markets. Those measures would alleviate obstacles for tokenized ETFs that continue to face hurdles from custodians, regulators, and exchanges that handle traditional settlement systems.
BlackRock has also tried settlement on JPMorgan’s Onyx system, now renamed Kinexys,to prepare for broader blockchain adoption. This move aligns with the efforts of other big financial institutions like Goldman Sachs and BNY Mellon, which are working to add tokenized assets to their money market funds.
JPMorgan strategist Teresa Ho has said tokenised money funds could help keep capital within the sector. Ho explained in June that,
Instead of posting cash, or posting Treasurys, you can post money-market shares and not lose interest along the way. It speaks to the versatility of money funds.
Additionally, the growing use of stablecoins has raised concerns for US banks because they compete with traditional bank deposits. The GENIUS Act,” which is the first US law on stablecoins, did not include tokens that give profit or interest. Some banks worry that these tokens could threaten their business model.
However, regulators suggest that regulatory certainty for stablecoins could ease tokenization by providing safe entry points into blockchain markets. That would support BlackRock’s plan for expanding beyond Bitcoin to tokenized money market funds and ETFs.
