BlackRock Mulls Tokenizing ETFs --- Is This the Next Big Move for Asset Managers?

BlackRock, the world's largest asset manager, is exploring the
possibility of converting some of its Exchange-Traded Funds (ETFs) into **blockchain-based tokenized versions**. The move is aimed at improving operational efficiency by reducing intermediaries, enhancing settlement speed, and increasing liquidity.

The consideration is still in its preliminary stages, but sources suggest that tokenized ETFs could allow for features like fractional ownership, peer-to-peer transfers, and faster trading outside traditional market hours. This would make investing more accessible to a wider range of participants, especially those interested in crypto-native financial infrastructure.

Tokenization would also permit on‑chain transparency---holders could verify ownership and audit holdings directly on the blockchain. Security, regulatory compliance, and integration with existing ETF structures remain significant challenges. BlackRock is reportedly assessing how to maintain compliance with securities laws and regulation while implementing tokenized versions of existing ETFs.

If implemented, this strategy could redefine the traditional asset
management framework by blending ETF investment with crypto
infrastructure---increasing innovation in both sectors.