There is an ongoing debate among digital asset analysts and exchange-traded fund experts that traditional ETFs will become extinct in the next two decades, while tokenized assets will dominate the market. This trend is supported by the exploration of industry giants, including Citigroup, Wells Fargo and others, which have already begun to tokenize money market funds. The participation of companies such as BlackRock has accelerated this development and further promoted the transformation of the industry.

Key Points

Traditional ETFs vs. Tokenized Assets

- Exchange-traded fund experts and digital asset analysts have different views on the future development of traditional ETFs and tokenized assets, some of which believe that traditional ETFs will become extinct in the next two decades and tokenized assets will replace them.

- Although some believe that tokenized assets may replace traditional ETFs, others are skeptical that tokenization does not simplify operations like ETFs and may not attract more investors.

Exploration and support from industry giants

- Industry giants such as BlackRock, Franklin Templeton and other companies have long been involved in the field of tokenized assets. They have begun to tokenize assets such as money market funds, which further enhances the development trend of tokenized assets.

- The cooperation between BlackRock and Securitize, a tokenized entity, shows the recognition and support of the tokenized market by industry giants. They jointly launched the USD Institutional Digital Liquidity Fund, which will help promote the development of the tokenized asset market.

Market situation and industry trends

- Some people believe that the tokenized market is expected to surpass traditional ETFs. Regarding the scale of physical assets for tokenized entities in the next 20 years, about 57% of people hold this view, while 23% believe that the concept of tokenization is exaggerated and does not have growth potential, and 20% are waiting to see the trend of the tokenized market.

- The Floki ecosystem has launched the TokenFi project, and the cooperation between BlackRock and Securitize and the investment support of industry giants in the tokenized market show that the tokenized market is becoming a key development direction of the future financial market.