Barriers to the expansion of tokenization are beginning to fall as major investment firms consider launching tokenized ETFs, according to new global research conducted by London-based Nickel Digital Asset Management (Nickel), Europe’s largest digital-asset-focused hedge fund manager, founded by former professionals from Bankers Trust, Goldman Sachs, and JPMorgan.
The study, conducted among institutional investors and wealth managers from organizations that collectively oversee more than $14 trillion in assets, found that almost all respondents (97%) believe that the potential launch of tokenized ETFs—such as those being considered by BlackRock—will be significant for the sector’s expansion. Nearly one-third (32%) view this development as very important.
The research also reflects a strong conviction that tokenization will continue to grow. Nearly 70% of respondents believe that the number of asset managers seeking to tokenize investment funds and asset classes will increase over the next three years.
The survey, which included firms from the United States, United Kingdom, Germany, Switzerland, Singapore, Brazil, and the United Arab Emirates, highlights growing awareness of the benefits of tokenization.
Private markets are viewed as the segment with the greatest potential. Nearly 70% of respondents identified private equity as the asset class offering the most opportunities, followed by fixed income (55%) and listed equities (42%).
Shorter settlement times, enhanced risk-management capabilities, and lower costs were cited as the least compelling benefits.
The study also confirms that concerns surrounding the expansion of tokenization remain. Nearly three out of four respondents (73%) identified distribution challenges as one of the five main barriers to adoption among professional investors, while 70% pointed to the lack of maturity among service providers.
