Tokenization of ETFs 'potentially more impactful than AI' says Janus Henderson's Cherney

Group 1: Market Trends and Investor Behavior - Investors are strategically positioning themselves ahead of the Federal Reserve's decisions, particularly in the fixed income sector [2][3] - As the Fed cuts rates, the absolute yields are decreasing, making excess yield increasingly significant for investors [3][4] - There is a notable interest in securitized products, especially highly rated ones, as investors seek higher quality yields [4][5] Group 2: ETF Market Dynamics - The ETF market has seen significant growth, with approximately 4,500 ETFs in the US, half of which were launched in the last five years [6] - The market remains top-heavy, with the top 100 ETFs accounting for about 65% of the total market, and the top 10 ETFs alone representing 30% [6][7] - The largest ETFs are primarily S&P 500 products, with the top three ETFs holding $2 trillion out of a total $12 trillion [7] Group 3: Innovation and Technology - Tokenization is viewed as a potentially transformative technology in financial services, possibly more impactful than AI [9][10] - Blockchain technology is expected to reduce costs and streamline processes in financial services by eliminating unnecessary intermediaries [11][12] - Companies are focusing on integrating blockchain into their core strategies to enhance efficiency and service delivery [10][12]