Tokenized ETFs Soar to $439 Million Market Cap Amid Rapid Growth

A tokenized ETF is an exchange-traded fund whose shares are recorded on a blockchain rather than in a traditional transfer agent's database.

The portfolio, investment strategy, and asset manager remain the same, but the record-keeping layer changes. The concept is familiar to crypto market participants from spot bitcoin ETFs, where the cryptocurrency becomes the underlying asset of a traditional ETF.

In tokenized ETFs, the process runs in the opposite direction: the accounting of a traditional security is moved to a blockchain.

The largest tokenized ETF issuance on the market uses the wrapper token scheme. On July 2, Ondo Finance launched on-chain versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron stock. The underlying assets remain with U.S. custodians and do not leave traditional infrastructure.

Oasis Pro TA, a SEC-registered transfer agent, mints 1:1-backed tokens on Ethereum. Broadridge provides disclosures and proxy voting through ProxyVote.com.