BlackRock, the world’s largest asset manager, is reportedly considering bringing some of its exchange-traded funds (ETFs) onchain, potentially including products tied to real-world assets such as stocks. The development was reported by Bloomberg, citing people familiar with the matter. Any such move would depend on regulatory approval.
Olga Kharif
The New York-based investment giant has steadily expanded its presence in the digital asset space. Its iShares Bitcoin Trust and iShares Ethereum Trust have become the largest ETFs tracking the two leading cryptocurrencies, with cumulative inflows of $55 billion and $12.7 billion, respectively. Both funds reached $10 billion in assets under management in under a year—an achievement only matched by one other ETF in history.
Beyond crypto ETFs, BlackRock also offers thematic products such as the iShares Blockchain and Tech ETF, which tracks companies involved in blockchain innovation without investing directly in tokens. The firm has further experience with tokenization through its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the first tokenized fund to surpass $1 billion in assets earlier this year. According to RWA.xyz data, BUIDL now manages more than $2 billion.
Interest in tokenization is building across Wall Street. Fidelity recently introduced a blockchain-based version of one of its Treasury money market funds, while Nasdaq has applied for U.S. Securities and Exchange Commission approval to trade tokenized securities alongside traditional stocks.
Still, tokenized equities remain a small and emerging market. Platforms such as Robinhood and Kraken now offer tokenized versions of major U.S. stocks like Tesla and Apple, but the total value of such assets in circulation is under $500 million, according to RWA.
BlackRock CEO Larry Fink has repeatedly said he believes all financial assets will eventually be tokenized. The firm’s crypto-related assets under management reached $50 billion in the first quarter of 2025, buoyed by $3 billion in net inflows.
Skeptics remain cautious about how much tokenization will reshape investor behavior. Bloomberg ETF analyst Eric Balchunas noted that while blockchain-based systems could improve financial “plumbing” behind the scenes, he doubts the trend will significantly shift consumer demand away from traditional ETFs.
“I think it makes sense to tokenize assets for people who are already onchain, just as ETFs made investing easier for brokerage users,” Balchunas commented. “But that group is still a small fraction of global capital, which is why the hype often feels outsized compared to the actual impact—at least in the medium term.”
Yeah it's a big lift , but in general I just think it needs to be clarified better 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…
— Eric Balchunas (@EricBalchunas) September 11, 2025
