- BlackRock’s BUIDL fund tops $2B, now exploring ETFs as blockchain-based investment vehicles.
- iShares Ethereum ETF hits 3.6M ETH; BlackRock could pass Coinbase in holdings by 2025.
BlackRock is examining how to bring exchange-traded funds (ETFs) onto blockchain systems, according to a Bloomberg report. The company is looking at ways to create tokenized versions of ETFs that hold real-world assets, such as stocks. Any such offering would need to comply with regulatory requirements.
Meanwhile, this comes after BlackRock’s launch of BUIDL, a tokenized money market fund that has grown to over $2 billion in assets. BUIDL operates across blockchains like Ethereum, Polygon, Avalanche, and Aptos.
The move also follows the strong performance of BlackRock’s spot Bitcoin ETF, one of the most actively traded in the market. A spokesperson for the firm declined to comment on the latest ETF tokenization plans.
Tokenized ETFs Could Offer Round-the-Clock Trading
Turning ETFs into tokens would allow them to trade beyond regular market hours. This could also make U.S.-based funds more accessible to international investors and expand their use as collateral in blockchain-based systems.
While ETFs are already considered flexible investment tools, placing them on the blockchain could introduce faster settlement, access to fractional ownership, and easier integration with digital platforms. Several firms, including JPMorgan and Goldman Sachs, are already testing similar approaches with tokenized money market funds. Nasdaq has also requested regulatory approval to list tokenized stocks on its exchange.
Despite growing interest, a full transition will take time. Traditional clearing systems operate on fixed schedules, while blockchain networks run continuously. Aligning both methods will require new infrastructure and support from regulators and custodians.
Industry Interest Builds as Firms Test Blockchain Tools
BlackRock CEO Larry Fink has said in past statements that “every financial asset can be tokenized.” The company has tested tokenized fund shares using JPMorgan’s Kinexys system and continues to participate in industry-led pilots for digital settlement.
Tokenization mania incoming.
Stablecoin supercycle is in progress.
Powered by Circle, Tether, Ethereum, Aptos, zkSync, Ethena, Sky, Aave, Chainlink, Morpho, Frax, RedStone, Maple, Securitize, Paxos, Ondo, Plasma, and many more. pic.twitter.com/zwbqenR2D5
— Andy (@ayyyeandy) July 9, 2025
JPMorgan strategist Teresa Ho said in a recent interview,
Instead of posting cash, or posting Treasurys, you can post money-market shares and not lose interest along the way.
The firm views tokenized funds as an efficient option for institutions looking to preserve liquidity while improving collateral use.
At the moment, the tokenized asset market is valued at around $28 billion. In comparison, the traditional U.S. ETF market stands in the trillions. Even so, asset managers appear to be positioning for a future where blockchain plays a bigger role in financial infrastructure.
In addition, BlackRock’s exposure to Ethereum has also increased. Its iShares Ethereum ETF now holds around 3.6 million ETH, making it the second-largest holder behind Coinbase. The firm has added roughly 1.2 million ETH in under two months.
As reported by BTCDaily, if this pace continues, BlackRock could surpass Coinbase in 2025. Binance would remain the largest ETH custodian, ahead by about 1.1 million ETH. The rise in institutional holdings signals growing demand for Ethereum-based products, especially those that may later connect with blockchain-native fund distribution systems.
