BlackRock Pushes to Tokenize Wall Street as Crypto ETFs Attract Billions

BlackRock is working with the SEC to tokenize Wall Street as its crypto ETFs attract over $48B in investor inflows.

Fridah Kangai
May 11, 2025
4:44 am

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

BlackRock seeks SEC approval to tokenize U.S. equity markets using blockchain.
IBIT and ETHA ETFs attract over $48 billion in combined net inflows.
Talks with SEC include crypto staking and real-world asset tokenization plans.

BlackRock Inc. is stepping forward in trying to change traditional finance by arguing for the tokenization of U.S. Flavor markets. Besides, BlackRock is expanding its position in the crypto ETF market, having access to high-flowing investor funds.

BlackRock met with the SEC Crypto Task Force on May 9, sought guidance on staking, tokenization, ETF approval standards, and options on ETFs. pic.twitter.com/GSKgJnikq1
— db (@tier10k) May 9, 2025

The firm, headquartered in New York, has recently engaged with the U.S. Securities and Exchange Commission’s Crypto Task Force to seek clarifications on key digital asset issues. Prominent topics that arose were the possibility of crypto staking, the tokenization of physical assets, and where to draw the lines for approval of crypto ETFs.

The asset manager has suggested using the major blockchains to tokenize Wall Street assets, trying to increase the reach and efficiency of conventional financial instruments. BlackRock will pursue broader global representation by offering its tokenized products to a broader consumer base and affording investors new options to engage with the major financial markets through blockchain.

Regulatory Talks Signal Wider Digital Expansion

The firm is exploring opportunities to integrate staking into its crypto products, offering investors a new revenue-generation route off blockchain technology. During a discussion with the SEC, BlackRock explained measures of incorporating staking in their crypto ETPs while adhering to existing rules.

The current market dynamic has seen BlackRock’s crypto-based ETF products perform very well. The iShares Bitcoin Trust (IBIT) has had a total net inflow of more than $44 billion, taking its total net assets to $62.91 billion. Additionally, the iShares Ethereum Trust (ETHA) has raised $4.2 billion in fresh funding, bringing current asset totals to $2.6 billion.

BlackRock’s initiatives are in the pipeline as it attempts to seek more defined guidance from U.S. regulators on how to develop digital asset products that comply with regulators’ stipulations. As SEC Chair, Paul Atkins and the agency’s crypto unit are trying to develop guidelines that would help with the development and launch of regulated crypto-based investments.

Based on BlackRock’s moves, leading financial institutions are becoming more integrated with blockchain technology into traditional finance. The growing demand for tokenized assets is driving firms such as BlackRock to move ahead of the curve, positioning themselves to determine the shape of financial markets.

By investing in crypto ETFs and engaging regulators, BlackRock is driving progress toward a tokenized financial future.
If BlackRock’s strategy gains traction, it could transform how U.S. equities are accessed and traded using blockchain platforms.

Also Read: Shock as Arizona Uses Unclaimed Funds to Start Bitcoin Reserve