Asset Managers Accelerate Tokenized ETF Launches Driven by FOMO, BNY Confirms

According to Ben Slavin, BNY's global ETF head, asset managers are accelerating tokenized ETF initiatives driven by investor demand and FOMO sentiment regarding early blockchain finance opportunities. BNY has multiple tokenized ETF projects underway; while regulatory and infrastructure frameworks remain incomplete, clients are pressing for early product launches.

Slavin noted that blockchain networks could become new distribution channels for traditional investment products, enabling round-the-clock fund transfers, shortened settlement times, and expanded global investor access. However, hundreds of well-known ETFs are already trading in tokenized form on unregulated markets without direct issuer authorization, creating reputational risks. Industry participants increasingly view early entry as more important than waiting for regulatory clarity.