TL;DR
- BlackRock is in talks with the SEC to tokenize its flagship iShares ETFs, with an estimated timeline between 90 days and 12 months.
- Bitwise views the initiative as a potential driver to move the sector out of the current bear market.
- The model would enable 24/7 settlement and the use of these assets as DeFi collateral, connecting $4 trillion held in digital wallets with traditional investment products.
BlackRock is exploring the tokenization of its flagship iShares ETFs, a move that many analysts see as a turning point for digital assets during a period of weak prices and cautious sentiment. The initiative seeks to place traditional exchange traded funds on blockchain networks, allowing them to operate inside crypto infrastructure while maintaining regulatory oversight.
"I can't tell you if it happens in 90 days or 12 months," said Martin Small, CFO of BlackRock.
That's 12 months at the outside.
If you're wondering what narratives will lead us out of the bear market, this is one of them. Bullish L1s and quite bullish DeFi imo. pic.twitter.com/Z40c22ZLGY
— Matt Hougan (@Matt_Hougan) February 11, 2026
Bitcoin trades near $69,520 as major asset managers search for new growth channels. The proposal from BlackRock has added momentum to the market, especially among firms that believe tokenized securities can connect institutional capital with decentralized finance. Conversations with the US Securities and Exchange Commission are ongoing, and the company has not set a final completion date.
BlackRock ETF Tokenization And The Bridge To DeFi
Tokenized ETFs would settle around the clock and could be transferred between digital wallets in minutes. Investors could use these instruments as collateral for lending protocols or automated strategies without converting them back to bank money. Supporters argue that this structure reduces friction and expands access for younger investors already familiar with blockchain tools.
Matt Hougan, chief investment officer at Bitwise, described the plan as a central force that could help markets recover. He noted that layer one blockchains and DeFi platforms would benefit from assets backed by regulated issuers and real cash flows. BlackRock executives have also pointed to tokenization as a major area of financial innovation.
Competition Among Asset Managers Intensifies
Other institutions such as Fidelity, Franklin Templeton and Goldman Sachs are preparing similar products. The choice of infrastructure remains open, with Ethereum and permissioned networks under evaluation. Scalability and security will determine which chain hosts the first wave of tokenized iShares.
The broader market remains volatile. Bitcoin has fallen about 4% in the last 24 hours, Ethereum trades close to $2,000 and Solana around $78. Despite the turbulence, Bitwise expects bitcoin to reach a range between $75,000 and $100,000 in the first half of 2026 as interest rates decline and institutional flows grow.
BlackRock targets the nearly $4 trillion stored in digital wallets that currently lack direct access to stocks and bonds.
