BlackRock’s Next Move: Tokenizing ETFs Following Bitcoin Fund Triumph

Wall Street's trillion-dollar whale just doubled down on crypto—and traditional finance should be worried.

BlackRock's Bitcoin ETF success wasn't a one-off experiment. It was the opening act. Now the asset management giant is bringing its entire ETF suite on-chain, signaling the biggest institutional validation of tokenization yet.

The Strategy Behind the Shift

Larry Fink's firm isn't just dipping toes anymore—it's diving headfirst into blockchain infrastructure. Tokenization unlocks 24/7 trading, instant settlement, and fractional ownership that makes traditional finance look like it's running on dial-up.

Why This Changes Everything

When the world's largest asset manager starts converting trillions into tokens, it's not a trend—it's a tectonic shift. Suddenly every pension fund and institutional portfolio needs to explain why they're not doing the same.

Legacy finance brokers watching their commission models evaporate: maybe time to update that resume.

In brief

• BlackRock has already launched BUIDL, a tokenized fund with 2.2 billion dollars in assets.
• Its bitcoin ETF is one of the best performers with 6.9 billion inflows in 2025.
• JPMorgan and other banks see tokenization as a response to stablecoins capturing flows.
• Analysts like Eric Balchunas still doubt real value for traditional investors.

From Bitcoin to ETFs: BlackRock’s growing appetite

BlackRock didn’t just ride the bitcoin wave, it amplified it. In a few months, its Bitcoin ETF became one of the most popular products on Wall Street, while its tokenized BUIDL fund has already reached 2.2 billion dollars in assets. For Larry Fink, head of the giant, it’s only the beginning: he has already stated that all financial assets will end up tokenized.

The bet is not absurd: ETFs are now more numerous than listed stocks. According to The Kobeissi Letter: “The number of ETFs has surpassed that of individual stocks for the first time in history. There are now over 4,300 ETFs, about 100 more than the 4,200 companies listed in the United States.“

In short, if BlackRock succeeds in tokenizing these products, it will not be a test but a large-scale revolution.

The infrastructure war: tokenization versus stablecoins 

Tokenization is not just a fad, it’s also a response to a direct threat: stablecoins. These dollar-backed cryptos are already capturing a growing share of financial flows, forcing Wall Street to react. JPMorgan, Goldman Sachs, and BNY Mellon are working on their own solutions, seeing tokenization as a way to preserve the power of traditional finance.

As Teresa Ho, strategist at JPMorgan, explains: 

Instead of depositing cash or Treasuries, you can deposit shares of money market funds and not lose interest along the way. This shows the versatility of these funds.

The advantage is clear: 24/7 trading, near-instant settlement, and use as collateral in DeFi. BlackRock, with its Bitcoin ETFs and BUIDL, wants to claim the ground before stablecoins absorb even more liquidity outside the banking system.

Between promise and skepticism: the illusion of tokenization? 

Behind the enthusiasm, Eric Balchunas, ETF analyst at Bloomberg, advises caution. For him, tokenization will not dramatically change the game: at best, it will make the “plumbing” of traditional finance a bit more efficient thanks to blockchain. 

But the idea that investors WOULD abandon their traditional ETFs to buy tokens seems unrealistic to him. According to him, the added value for consumers is almost nil, a scenario reminiscent of other financial trends already overestimated.

Yet, the numbers impress:

• The market for tokenized real-world assets (RWA) is already worth $26.5 billion;
• Animoca forecasts a $16 trillion market by 2030;
• BlackRock manages $79.6 billion in digital products, or 1% of its assets under management;
• Its Bitcoin ETF attracted $6.9 billion in inflows in 2025.

Between the promise of a colossal market and analyst skepticism, tokenization remains an uncertain but irresistibly explored path.

BlackRock’s breakthrough into the crypto-sphere leaves no one indifferent. For some, it is a step towards more modern and inclusive markets. For others, it is a threat. Critical voices believe that the giant seeks to take all your savings, reminding that finance, even dressed in blockchain, remains a matter of power.

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