BlackRock Weighs Tokenized ETFs Tied To RWAs: Bloomberg

Following the success of its spot Bitcoin and spot Ethereum ETFs (exchange-traded funds), asset administration large BlackRock is reportedly trying to tokenize its ETFs on the blockchain.

In accordance with a Bloomberg report that cited sources aware of the matter, the agency is contemplating tokenizing funds that provide publicity to real-world property (RWA). Nonetheless, this transfer could be topic to “regulatory issues,” the report added.

BlackRock Crypto ETFs Entice Billions Of {Dollars} At Document Tempo

BlackRock already provides a number of crypto-related merchandise. These embody ETFs that observe the digital asset market leaders Bitcoin (BTC) and Ethereum (ETH), the iShares Bitcoin Belief and the iShares Ethereum Belief.

Information from Farside Buyers exhibits that BlackRock’s spot Bitcoin ETF leads the market when it comes to cumulative inflows, with its whole flows up to now standing at $59.513 billion. That is significantly greater than the second-largest fund when it comes to this metric, which is Constancy’s FBTC with its $12.321 billion in cumulative inflows.

US BTC ETF flows (Supply: Farside Buyers)

Whereas BlackRock’s spot Ethereum ETF has been the very best performer of all US spot ETH ETFs, it hasn’t gained as a lot traction because the asset supervisor’s BTC product. Up to now, the ETH ETF has seen $12.721 billion in cumulative inflows.

Each BlackRock’s spot Bitcoin and spot Ethereum ETFs reached $10 billion in property underneath administration in a single 12 months or much less. This makes them two of solely three such merchandise to hit this milestone.

Along with these ETFs, BlackRock additionally provides lesser-known “thematic” funds just like the iShares Blockchain and Tech ETF, which invests in an index of crypto-related firms.

BlackRock Already In The Nascent Tokenization House

The reported plans to tokenize its ETFs comes as BlackRock already manages the world’s largest tokenized cash market fund known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).

That fund crossed the $1 billion mark In March, and now accounts for over $2 billion in managed property.

Tokenized equities, together with shares and ETFs, are nonetheless a nascent market regardless of a current uptick in curiosity. Whereas a number of main gamers resembling Robinhood and Kraken are at present out there, there’s lower than $500 million price of those property in circulation, information from RWA.xyz exhibits.

Previously 30 days, there has additionally been a greater than 40% drop within the variety of month-to-month lively addresses to round 23,940. Month-to-month switch volumes have slid over 22% throughout this era as effectively.

Whereas the reported transfer by BlackRock to tokenize its ETFs will carry the funds on-chain, Bloomberg Intelligence ETF analyst Eric Balchunas questions the “worth add” for customers.

In an X submit, he mentioned that tokenization might assist make the “again workplace (plumbing)” within the conventional finance (TradFi) house “extra environment friendly” via the utilization of blockchain expertise.

We have to outline the pattern higher: If by ‘tokenization’ you imply the again workplace (plumbing) of TradFi will likely be barely extra environment friendly by using blockchain expertise? Then certain, superb, most likely will however zzzz. What’s implied tho by the hype is getting precise traders to promote… https://t.co/SzXROTB9oi

— Eric Balchunas (@EricBalchunas) September 11, 2025

“What’s implied tho by the hype is getting precise traders to promote $VOO et al and purchase a token a la the best way ETFs stole from MFs,” he wrote.

“I don’t see the worth add for the buyer,” Balchunas added.

In a follow-up remarkhe mentioned BlackRock’s transfer to tokenize its ETFs remains to be “a giant elevate,” including that it is smart to tokenize stuff for those who are already on-chain.

“However the on chain ppl are such a small fraction of the worldwide cash which is why the hype generally feels too heavy for the affect (at the very least medium time period),” he wrote.

TradFi Companies Transfer To Safe Dominance Amid Stablecoin Growth, Liquidity Shift

BlackRock shouldn’t be the one conventional finance agency that’s rising its presence within the blockchain house.

In April, the Depository Belief & Clearing Company (DTCC) introduced an revolutionary new platform for tokenized collateral administration utilizing its AppChain infrastructure.

A few months after that in July, Goldman Sachs and BNY Mellon partnered to launch a tokenized cash market funds resolution.

Earlier this month, the Nasdaq additionally filed a proposal with the US Securities and Change Fee (SEC) to permit buying and selling of listed securities on its important market in tokenized type.

The push into the tokenization house is a part of a broader effort by tradFi companies to take care of their dominance because the adoption of stablecoins grows and liquidity begins shifting on-chain.

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