Markets Daily Crypto Roundup: Why Tokenization Is the Next Unlock After ETFs
Released on May 27, 2025 by CoinDesk
In this insightful episode of Markets Daily Crypto Roundup, hosted by Jen from CoinDesk, the conversation centers on the burgeoning field of tokenization and its potential to revolutionize the financial landscape following the widespread adoption of Exchange-Traded Funds (ETFs). The episode features Jono Steinberg, CEO and founder of WisdomTree, an ETF powerhouse managing $119 billion in assets globally. Alongside Andy, the discussion delves into the current state of crypto as an asset class, the intricacies of tokenizing real-world assets, and the future prospects of blockchain technology in mainstream finance.
1. Crypto as an Emerging Asset Class
The episode opens with Jen posing a critical question to Jono: "Can we call crypto an asset class yet?" [01:07]. Jono responds thoughtfully, acknowledging that while crypto isn't fully established as an asset class, significant strides have been made. He highlights Bitcoin's established status and the impact of products like WisdomTree's CoinDesk 20, which aims to mainstream crypto investments.
Notable Quote:
"It's not quite an asset class yet, but it's moving well along the way. Bitcoin is fully established for sure." — Jono Steinberg [01:17]
2. WisdomTree's Role in Tokenization
Jono elaborates on WisdomTree's initiatives in the digital assets space, emphasizing their efforts in managing Exchange-Traded Products (ETPs) worth approximately $2 billion. The company has ventured into tokenizing real-world assets, currently holding about $150 million in tokenized assets, including money market funds and gold equities.
Notable Quote:
"I'm very bullish on tokenization on the blockchain as the next wrapper of the future beyond ETFs." — Jono Steinberg [02:21]
3. Challenges in Tokenizing Real-World Assets
The conversation shifts to the challenges faced in tokenizing real-world assets. Jono points out that while ETFs have set a high bar for ease and accessibility, tokenization offers programmable exposures that could drive further innovation. However, displacing the ETF market requires overcoming significant regulatory and adoption hurdles.
Notable Quote:
"Tokenization of real-world assets is going to be a hard journey to displace the ETF, which has the least amount of friction." — Jono Steinberg [03:13]
4. Comparing ETFs and Tokenization: A Journey Ahead
Drawing parallels between the ETF and tokenization journeys, Jono reflects on the longevity and success of ETFs, which have been around for 32 years and recently surpassed mutual funds in revenue. He suggests that tokenization is still in its infancy but holds immense potential to offer more seamless and innovative financial products.
Notable Quote:
"When you think about ETFs are like 32 years old. It was only a couple of years ago that they surpassed mutual funds from a revenue standpoint." — Jono Steinberg [06:09]
5. The Future of Tokenized Assets: WisdomTree's Vision
Looking ahead, Jono shares WisdomTree's strategic initiatives, including WisdomTree Prime and WisdomTree Connect. These platforms aim to integrate traditional assets with blockchain technology, offering investors a unified and globalized financial experience. Despite the lengthy regulatory challenges, Jono remains optimistic about the long-term integration of tokenized assets into mainstream portfolios.
Notable Quote:
"We are going to make that happen within WisdomTree Prime and WisdomTree Connect." — Jono Steinberg [06:09]
6. Closing Remarks
Andy complements Jono's insights, expressing enthusiasm for WisdomTree's forward-thinking approach and the potential of tokenization to unlock new avenues in the financial markets. Jen concludes the episode by thanking Jono for his valuable contributions, underscoring the significance of the discussion for investors and industry stakeholders alike.
Notable Quote:
"Even though that's been the bread and butter of the business and where you've been a leader and now going into Connect and Prime just seemed like a next logical step." — Andy [07:15]
Conclusion
The episode effectively captures the dynamic interplay between traditional financial instruments like ETFs and the innovative frontier of tokenization. With thought leaders like Jono Steinberg at the helm, WisdomTree is poised to bridge the gap between conventional investing and the transformative potential of blockchain technology. As tokenization continues to evolve, its integration with established financial systems promises to redefine how investors access and engage with the markets of the future.