Here's something that surprises people new to finance: when you buy a bond or an ETF, you don't really own it the way you'd assume. You own an entry in a chain of intermediaries broker, custodian, clearinghouse and settlement takes a couple of days. It works, but it's slow, layered, and mostly invisible until something breaks.
Tokenization was supposed to fix this. In practice, a lot of "tokenized" products are just a wrapper: a token that points at an asset still sitting in the old plumbing. You can't settle it instantly, and you can't really use it freely in DeFi.
So the interesting question for something like Dusk Trade isn't "can you tokenize an ETF" plenty of people can mint a token. It's whether the thing you hold is real ownership that settles on the chain itself, and can move without asking three intermediaries for permission first.
That's harder than it sounds. A neobroker is already a brutal business. Doing it as a regulated MTF, under EU rules, with instant settlement and composability, means squaring things that usually fight each other: permissioned, compliant assets versus open, programmable markets.
If it works, the people who'd use it are ordinary investors who want MMFs, bonds and ETFs that actually behave like onchain assets. What kills it: if "instant" and "composable" quietly shrink back into T+2 with extra steps.