'Institutional Are Crypto Curious,' Bitwise Exec Says: How ETFs Bring Efficiency To Digital Asset Portfolios

Traditional and digital finance intersection took center stage at the Benzinga Future of Digital Assets conference, where panelists shared strategies for integrating tokenized assets and exchange-traded funds (ETFs) into investment portfolios.

The discussion featured Robert Leshner, CEO of Superstate; Jeff Park, head of alpha strategies at Bitwise Asset Management; and Emma Marriott, co-founder of Atomic. Together, they explored how these financial tools are reshaping access and opportunities for investors.

Leshner outlined the growing use of tokenization to modernize traditional assets. "You're going to have products that span both [crypto and traditional finance]," he said, highlighting how tokenized offerings allow more seamless interaction between traditional financial products and blockchain-based solutions.

Leshner emphasized that tokenized assets, such as treasury bill funds, open the door for wider participation in the market.

See Also: ‘We’re Seeing These Worlds Merge’: Superstate CEO Addresses Role Of Tokenization In Modern Portfolios

By bridging traditional and blockchain-based systems, tokenization is giving investors flexibility and access to previously siloed financial instruments. "We're at the early stages of combining these markets," Leshner added.

ETFs Boost Institutional Interest

Park discussed the appeal of ETFs for institutional investors, particularly those who have been cautious about digital assets. "Institutions are now crypto curious," Park shared, noting that ETFs provide an accessible and regulated way to gain exposure without requiring complex infrastructure.

Park highlighted how ETFs introduce liquidity to the market, benefiting individual and institutional participants. "ETFs bring new ways to unlock liquidity that the market hasn't had before," he explained. The convenience of ETFs attracts investors seeking efficiency and risk management in their digital asset portfolios.

Wealth Managers Embrace Changing Expectations

Marriott addressed the evolving demands of investors, who increasingly expect integrated solutions for managing traditional and digital assets. "We envision a future where people consolidate into a single financial relationship," she said, describing efforts to streamline wealth management.

Marriott also noted that partnerships between traditional finance and digital platforms are essential for delivering this integration. "Clients expect the efficiency they see in blockchain to extend to their broader financial portfolios," she added, emphasizing the importance of meeting these expectations as digital adoption grows.

Looking Ahead: Regulation and Innovation

The panelists expressed optimism about the regulatory outlook for digital finance. Leshner predicted that crypto-specific legislation could lead to new products and increased institutional adoption. For the first time, we'll see a framework that makes it easier for companies to register products with regulators," he said.

As digital finance continues to evolve, tokenization and ETFs are emerging as essential tools for expanding access and creating new opportunities for institutional and retail investors. The conference’s discussion highlighted how these developments are setting the stage for a more integrated financial ecosystem.

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