Tokenized Stocks Seen as Complementary to ETFs Amid SEC Rule Change Consideration

Bloomberg senior ETF analyst Eric Balchunas downplays the disruptive potential of tokenized stocks on traditional exchange-traded funds, even as U.S. regulators explore rule changes that could list shares like Tesla and Nvidia on crypto exchanges. The move represents less a threat than a convenience for digital asset investors seeking familiar exposure methods.

"This is about meeting crypto natives where they are," Balchunas noted, comparing the development to how ETFs democratized crypto access for mainstream investors. Tokenized equities would offer blockchain advantages—24/7 trading, fractional shares, and instant settlement—but face an uphill battle against the $11 trillion ETF ecosystem.

The SEC's deliberation signals growing institutional acceptance of blockchain infrastructure. Major financial players worldwide are already piloting tokenization projects, with BlackRock CEO Larry Fink recently calling it "the next generation for markets." Yet Balchunas maintains the crypto format's niche appeal: "The side with more money tends to set the rules."