BNY sees ‘FOMO’ driving asset managers into tokenized funds
Fund issuers are exploring blockchain-based ETFs amid fears of missing an early foothold in tokenized finance.
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Summary
- Asset managers are accelerating plans to tokenize ETFs, driven by investor demand and concerns about missing an early opportunity in blockchain-based finance.
- BNY says firms are moving ahead with tokenized fund products despite unresolved questions around regulation, trading infrastructure and market structure.
- Issuers face growing reputational risks as third parties create tokenized versions of existing ETFs that can trade outside traditional financial markets without their involvement.
