September 11, 2025 – Global asset management giant BlackRock is said to be working on ways to bring some of its exchange-traded funds (ETFs) to blockchain, according to reports. The initiative could include tokenizing funds tied to traditional markets such as stocks and other real-world assets, though regulatory approvals would play a critical role before any launch.
BlackRock has already built a strong presence in digital finance. Its iShares Bitcoin Trust and iShares Ethereum Trust have become some of the fastest-growing ETFs in history, each surpassing $10 billion in assets under management (AUM) in under a year. Together, they have attracted more than $67 billion in inflows, making them leading products in the crypto-linked ETF space.
Beyond ETFs directly tied to digital assets, BlackRock also runs thematic investment vehicles like the iShares Blockchain and Tech ETF, which focuses on publicly traded companies operating in the crypto and Web3 ecosystem.
Tokenization Push Across Wall Street
The potential BlackRock move reflects a wider trend on Wall Street, where major institutions are experimenting with tokenized financial products. Recently, Fidelity launched a blockchain-based version of one of its Treasury money market funds, while Nasdaq has filed for approval to list tokenized securities alongside traditional shares.
BlackRock is no stranger to this area. Its USD Institutional Digital Liquidity Fund (BUIDL) became the first tokenized fund to exceed $1 billion in assets earlier this year. The fund now manages over $2 billion, according to data provider RWA.xyz.
Still, the market for tokenized stocks and ETFs remains small. Industry trackers estimate less than $500 million worth of tokenized equities are currently circulating, even though platforms like Robinhood and Kraken have introduced tokenized versions of popular U.S. stocks including Tesla and Apple.
BlackRock’s Long-Term Vision
BlackRock CEO Larry Fink has repeatedly stated his belief that all financial assets will eventually be tokenized, a shift he considers inevitable as financial infrastructure modernizes. The firm’s crypto-related assets under management stood at around $50 billion in early 2025, with $3 billion in net inflows in just the first quarter.
Despite the momentum, not everyone is convinced tokenization will disrupt retail investing. Bloomberg ETF analyst Eric Balchunas noted that while blockchain-based funds may improve back-end processes, they may not fundamentally change investor preferences.
“Tokenization could streamline operations for those already on-chain,” he said, “but it’s unlikely to trigger mass migration away from traditional ETFs in the near term.”
The Takeaway
If BlackRock proceeds with tokenizing its ETFs, it would mark another milestone in the merging of traditional finance (TradFi) and blockchain technology. While adoption may be gradual, the move underscores how leading institutions are preparing for a future where digital rails support mainstream investing.
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