Franklin

Future

BlackRock

<ul>
 <li>Experts debate tokenization’s potential to replace traditional ETFs over the next 20 years amid growing industry interest.</li>
 <li>Financial giants like BlackRock and Franklin Templeton are exploring tokenization, indicating growing industry interest.</li>
 <li>Despite the rise of tokenization projects, skepticism remains about its ability to replace well-established ETF models entirely.</li>
</ul>
<p>A recent discussion on X, featuring analysts such as <a href="https://x.com/EricBalchunas" rel="noopener noreferrer nofollow">Eric Balchunas</a>, Senior Bloomberg ETF Analyst, and Niccolo Bardoscia, Head of Digital Assets Trading at Intesa Sanpaolo, has started a debate about the future of Exchange Traded Funds (ETFs) in the face of tokenization. The conversation revolved around whether tokenized assets could potentially make traditional ETFs outdated in the next two decades.</p>
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   <p lang="en" dir="ltr">You can get a full and diverse portfolio of basically everything via ETFs for like 5bps- and it is hugely regulated. And for end user there is ZERO friction. They click 'buy' and they done. I don't see where the fat/friction/cost here that tokens make better. The liquidity / arb…</p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1799163659395936554?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 7, 2024</a>
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<h3 class="wp-block-heading" id="h-the-debate-on-tokenization-versus-etfs"><strong>The Debate on Tokenization Versus ETFs</strong></h3>
<p>The focus was on the viability of <a href="https://cryptonewsland.com/bitcoin-ethereum-and-solana-outshine-traditional-assets-in-annualized-returns/" rel="noopener noreferrer nofollow">traditional ETFs</a> amidst the rising trend of asset tokenization. While Bardoscia and some participants saw tokenization as a future game-changer, Balchunas expressed skepticism. He argued that the simplicity and regulation of ETFs, coupled with zero friction for end-users, make ETFs a more appealing investment option compared to the complexities of tokenization.</p>
<h3 class="wp-block-heading" id="h-poll-results-reflect-mixed-sentiments"><strong>Poll Results Reflect Mixed Sentiments</strong></h3>
<p>To gauge public opinion, Balchunas conducted a poll on X, asking followers how significant they believe the tokenization of <a href="https://cryptonewsland.com/unlocking-wealth-dive-into-the-top-4-real-world-assets-rwa-tokens-of-may-2024-tru-ondo-dusk-and-cpool/" rel="noopener noreferrer nofollow">real-world</a> assets will become over the next twenty years. Of the many responses, 57% predicted that tokenization would surpass ETFs in prominence. However, 23% viewed tokenization as overhyped, doubting its potential for substantial growth. The remaining 20% were uncertain about the future of tokenization.</p>
<h3 class="wp-block-heading" id="h-industry-support-for-tokenization"><strong>Industry Support for Tokenization</strong></h3>
<p>Supporting the <a href="https://cryptonewsland.com/blackrocks-debut-tokenized-fund-signals-significant-industry-shift/" rel="noopener noreferrer nofollow">optimistic view</a> of tokenization, Nate Geraci, President of ETF Store, pointed out that major financial entities like BlackRock and Franklin Templeton are already venturing into tokenization. Geraci highlighted BlackRock’s collaboration with Securitize to launch the USD Institutional Digital Liquidity Fund, a tokenized private equity offering with a $100,000 minimum investment. This move underlines the growing interest and investment in tokenization within the financial industry.</p>
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   <p lang="en" dir="ltr">Cut out middlemen (fee takers which impact asset managers’ bottom line &amp; end clients’ performance), eliminate errors (record-keeping, etc), real-time settlement, 24/7 trading, streamline IP/licensing arrangements (think index providers), etc…</p>— Nate Geraci (@NateGeraci) <a href="https://twitter.com/NateGeraci/status/1799165122918686760?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 7, 2024</a>
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<h3 class="wp-block-heading" id="strong-emerging-tokenization-projects-strong"><strong>Emerging Tokenization Projects</strong></h3>
<p>Further indicating the shift towards tokenization, the Floki ecosystem has <a href="https://cryptonewsland.com/floki-and-tokenfi-collaboration-take-over-the-sports-industry/" rel="noopener noreferrer nofollow">introduced TokenFi</a>, its native tokenization project. These initiatives suggest a potential pivot in the financial industry, where tokenized assets might become increasingly crucial. However, despite these developments, the debate continues about whether tokenization can truly replace the well-established ETF model.</p>
<p>The discussion among analysts reflects the broader industry debate on the future of traditional ETFs versus tokenized assets. While there is significant support and investment in tokenization, skepticism remains about its ability to fully replace traditional ETFs. The coming years will likely reveal whether tokenization will revolutionize the financial sector or coexist alongside traditional investment models.</p>
<h4 class="wp-block-heading" id="h-read-also">Read also</h4>
<ul class="wp-block-yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/ripple-cto-david-schwartz-simplifies-tokenization-concept/" rel="noopener noreferrer nofollow">Ripple CTO David Schwartz Simplifies Tokenization Concept</a></li>
 <li><a href="https://cryptonewsland.com/ripples-tokenization-revolution-unlocking-liquidity-efficiency-and-transparency/" rel="noopener noreferrer nofollow">Ripple’s Tokenization Revolution: Unlocking Liquidity, Efficiency, and Transparency</a></li>
 <li><a href="https://cryptonewsland.com/ripples-tokenization-transformation-navigate-the-new-frontier-of-real-estate/" rel="noopener noreferrer nofollow">Ripple’s Tokenization Transformation: Navigate the New Frontier of Real Estate</a></li>
 <li><a href="https://cryptonewsland.com/jpmorgan-embraces-blockchain-launches-tokenization-platform-in-collaboration-with-blackrock/" rel="noopener noreferrer nofollow">JPMorgan Embraces Blockchain: Launches Tokenization Platform in Collaboration with BlackRock</a></li>
 <li><a href="https://cryptonewsland.com/xrpls-potential-trillion-dollar-leap-in-rwa-tokenization-sparks-enthusiasm/" rel="noopener noreferrer nofollow">XRPL’s Potential Trillion-Dollar Leap in RWA Tokenization Sparks Enthusiasm</a></li>
</ul>
<p>The post <a href="https://cryptonewsland.com/tokenization-raises-questions-over-the-future-of-traditional-etfs/" rel="noopener noreferrer nofollow">Tokenization Raises Questions over the Future of Traditional ETFs</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Tokenization Raises Questions over the Future of Traditional ETFs

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