BNY says asset managers are accelerating tokenized ETF work as investor demand and fear of missing early blockchain-finance opportunities grow, while unauthorized tokenized versions of major ETFs raise reputational risks.
Fund issuers are examining blockchain-based ETFs as competition to establish an early position in tokenized finance intensifies. BNY global ETF head Ben Slavin said asset managers are speeding up tokenized ETF efforts in response to investor demand and fear of missing early blockchain-finance opportunities, adding that BNY has several projects underway. He also warned that hundreds of well-known ETFs already trade in tokenized form on unregulated markets, often without issuer authorization, creating reputational risk for fund providers. The comments underscore both the commercial appeal and the control challenges of bringing traditional fund structures onto blockchain rails, where tokenization is viewed as a way to modernize distribution, trading, and settlement.