BlackRock Expands Tokenized ETFs Post-BUIDL Ethereum Fund

Published: 2025-09-12 18:13:02 |

BlackRock is moving forward with tokenized ETFs after its Ethereum-based USD Institutional Digital Liquidity (BUIDL) fund went live. The BUIDL fund, backed by cash, US Treasury bills and repurchase agreements, issues daily yields on-chain and uses infrastructure from Fireblocks, BitGo, Coinbase and Anchorage, with Securitize as transfer agent and BNY Mellon as custodian. The asset manager is in talks to issue traditional ETF shares as blockchain tokens to enable 24/7 trading, global access and on-chain collateral. Executives see the tokenized ETFs market scaling to $10 trillion as real-world asset tokenization surpasses $10 billion in total value locked. Tokenized ETFs offer fractional ownership, faster settlement and transparency. However, integration with existing market structures, US securities regulations and cross-border legal frameworks still needs regulatory greenlights. Industry momentum builds: Galaxy Digital tokenized a Nasdaq stock, and Nasdaq seeks SEC approval for tokenized equities. SEC’s “Project Crypto” and CFTC collaboration point to regulatory openness. CEO Larry Fink argues that tokenized ETFs will cut costs and simplify investing, bridging traditional finance and digital markets.

Bullish

BlackRock’s push into tokenized ETFs signals strong institutional adoption of blockchain, driving demand for Ether as a settlement layer. In the short term, news may boost ETH trading as traders anticipate increased network activity and fee revenue from tokenized ETF operations. The successful BUIDL fund launch underscores operational readiness, further validating tokenization use cases and bolstering market confidence. Over the long term, tokenized ETFs could broaden asset liquidity, lower entry barriers and attract new investors to crypto markets. This structural shift may reinforce Ethereum’s role in real-world asset settlement and expand capital inflows into decentralized finance. While regulatory hurdles remain, CEO Larry Fink’s endorsement and growing industry support suggest that tokenized ETFs will become a significant driver of sustained demand, making the overall outlook bullish for Ethereum and related tokens.