Capital markets News

BCG estimates tokenization could improve mutual fund returns by $100 billion

tokenized funds savings

In the realm of tokenization, Boston Consulting Group (BCG) is known for estimating (in 2022) that the market size of tokenized real world assets (RWA) would reach $16 trillion by 2030. Now it has published a whitepaper in conjunction with Aptos Ascend and Invesco, predicting that the tokenized fund sector could reach $600 billion by 2030 if growth is similar to ETFs. For the record, ETFs reached 1% of the assets managed by mutual funds within seven years.

In case you wondered, the $600 billion figure is $200 billion more than the tokenized funds estimate included in the $16 trillion forecast.

BCG splits the market potential into existing crypto investors versus traditional investors. Current crypto investors represent a potential demand for up to $290 billion of tokenized funds. But the real demand measured in trillions will come from traditional financial institutions.

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