Nickel: Tokenized ETFs expected to drive mainstream market adoption

Nickel: Tokenized ETFs expected to drive mainstream market adoption

February 25, 2026

ETFs

Barriers to the expansion of tokenization are starting to fall as major investment firms consider launching tokenized ETFs, according to new global research by London-based Nickel Digital Asset Management (Nickel).

Its study with institutional investors (pension funds, insurance asset managers and family offices) and wealth managers at organisations which collectively manage over $14 trillion in assets found almost all (97%) believe the potential launch of tokenized ETFs such as BlackRock’s will be important to the expansion of the sector with nearly one in three (32%) rating the development as very important.

The study also reflected the belief that tokenization will continue to growth, with nearly 70% of respondents believing that fund managers looking to tokenize investment funds and asset classes will increase over the next three years.

Nickel’s research with firms in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates found growing awareness of the benefits of tokenization. Private markets are seen as offering the greatest potential for tokenization, with almost 70% seeing private equity funds as the asset class with the most opportunity, followed by fixed income (55%) and public equities (42%).

Reduced settlement times, enhanced risk management capabilities and lower costs were ranked as the least attractive benefits. The study found there are still concerns about the expansion of tokenization, with nearly three out of four (73%) questioned highlighting distribution issues as one of the top five barriers to adoption of tokenization.

Related posts