Pantera Capital Says Tipping Point for Tokenization Likely Approaching As Sector ‘Mirrors the Early Days of ETFs’
Crypto investment giant Pantera Capital says there is a “great on-chain migration” underway as tokenization moves from a concept to reality. In a new newsletter, Pantera general partner Franklin Bi says “the rise of tokenized assets today mirrors the early days of ETFs (exchange-traded funds).” Says the investor, “When the first U.S. equity ETF (SPY) launched in 1993, it crossed $1 billion in AUM (assets under management) within a year. But the real inflection point wasn’t its size. It was when ETF volumes began consistently matching and eventually exceeding mutual fund flows. That’s when market structure changed and investor behavior soon followed. We believe tokenization will hit a similar moment in broad market structure transformation and issuer and investor behavior.” Bi says that when any one of four things happens, the tipping point for tokenization will have arrived. Those things include daily on-chain equity volume ex...