Mantle and Securitize Drop $400M Crypto Index Fund—Wall Street’s FOMO Just Went Tokenized

Brace for institutional crypto FOMO: Mantle and Securitize just unleashed a $400 million tokenized index fund, MI4, blending DeFi efficiency with TradFi’s hunger for yield. The fund tracks top crypto assets—because nothing says ’mature market’ like repackaging volatility as an institutional product.

Who needs ETFs when you’ve got blockchain rails? The move bypasses traditional custody headaches while giving wealth managers something to pitch between martinis. Expect more funds to follow—the race to tokenize everything from Treasuries to memecoins is officially on.

Bonus jab: Because nothing secures your financial future like a digital asset that mooned 200% last quarter—until it didn’t.

Mantle Taps Tokenization to Package Crypto Exposure

MI4 offers exposure to a basket of digital assets—BTC, ETH, SOL, and USD-pegged tokens—integrated with on-chain yield strategies. It is designed for investors seeking passive income without direct custody or asset management responsibilities.

Mantle Treasury has committed up to $400 million as anchor capital, with Securitize tapped to tokenize investor interests on Mantle Network.

Assets will be held using institutional infrastructure including Fireblocks and multisig controls.

The fund rebalances quarterly and incorporates staking mechanisms like Mantle’s mETH and Bybit’s bbSOL to generate yield within a compliant framework.

Tokenized shares can be transferred between approved participants and may be used as collateral under specific conditions.

“Our basket of the major crypto currencies aims to capture all capital on chain looking for smart beta with income and is a set-it-and-forget-it solution for institutions without the complexities of direct custody,” said Mantle’s Global Head of Strategy Timothy Chen.

S&P 500 Logic to Crypto

Carlos Domingo, CEO of Securitize, added that the fund “mirrors the best of traditional finance while delivering the full potential of tokenized securities.”

MI4 is positioned as an index-like crypto product with embedded yield and transferability, designed for institutional use cases.

Rollout begins in Q2 2025, with further integrations planned across the broader asset management ecosystem.

Institutional funds are increasingly designing crypto products to resemble the structure and mechanics of traditional index funds.

Rather than reinvent financial tools, firms are adapting existing models—employing passive strategies, periodic rebalancing, and regulated wrappers—to bring digital assets into portfolios already built around the S&P 500 and similar benchmarks.

What was once framed as an alternative system now moves through familiar channels. As tokenization spreads across fund structures and custody models, the gap between traditional finance and blockchain is closing—not through disruption, but through replication.