BLK Pushes Deeper Into Digital Assets With Plans to Tokenize ETFs

Core Insights - BlackRock Inc. is exploring the launch of tokenized exchange-traded funds (ETFs) on blockchain networks while ensuring their values remain tied to traditional assets like stocks [1][12] - The tokenization of ETFs allows for extended trading hours, fractional ownership, and the use of ETF shares as collateral in decentralized finance networks [3][12] Tokenization Benefits - Tokenization enables trading beyond standard hours, expands access for international investors, and allows fractional ownership, which lets investors acquire smaller portions of assets [3] - Faster settlements and more efficient market structures are driving the growing adoption of tokenization across the financial industry [3] Competitive Landscape - BlackRock has positioned itself as an early mover in the tokenization space, previously experimenting with tokenized fund shares on JPMorgan's Onyx blockchain [4] - Competitor Franklin Templeton has already introduced tokenized share classes of money market funds, indicating a competitive push in this area [3] Financial Performance - In Q2 2025, BlackRock's assets under management (AUM) grew 17.7% year over year to a record $12.53 trillion, driven by a 329.3% surge in digital assets [7][12] - The firm's focus on digital assets is further highlighted by a recent $116 million investment from The Harvard Management Company in BlackRock's iShares Bitcoin Trust [7] Strategic Initiatives - BlackRock is actively working to grow its AUM, including plans to open an office in Kuwait for investment advisory services [8] - The company announced a new customized portfolio offering in collaboration with Citigroup, managing approximately $80 billion in assets, expected to launch in Q4 2025 [9] Recent Acquisitions - BlackRock has made several acquisitions to enhance its private market offerings, including the purchase of ElmTree Funds and HPS Investment Partners, as well as acquiring Preqin for $3.2 billion [10]