BNY Mellon: FOMO Drives Asset Managers to Accelerate Tokenized ETF Plans

According to Mars Finance, citing The Block, Ben Slavin, Global ETF Head at BNY Mellon, said asset managers are accelerating their tokenized ETF initiatives, primarily driven by investor demand and FOMO over missing early opportunities in blockchain finance. Slavin revealed that BNY has multiple tokenized ETF projects underway; although regulatory and infrastructure frameworks are not yet fully in place, many clients are eager to launch products as soon as possible. He believes blockchain networks have the potential to become new distribution channels for traditional investment products, enabling 24/7 ownership and transfer of fund shares, reducing settlement times, and expanding global investor access. Slavin also noted that hundreds of well-known ETFs are already trading in tokenized form on unregulated markets, most without direct authorization from the fund sponsors—posing reputational risks. This topic has become a key focus of discussion among BNY’s asset management clients. While the industry continues to explore core issues such as integrating tokenized funds with existing infrastructure, secondary trading mechanisms, and regulatory frameworks, Slavin stated that asset managers are increasingly leaning toward the view that “getting in early” is more important than “waiting for clarity.”