According to the author, tokenization is evolving with stablecoins like USDT and USDC demonstrating strong product-market fit, facilitating over $250 billion in crypto trades for BTC and ETH through partnerships with companies such as MoneyGram and PayPal. The author states that next phases include tokenizing structured credit and private funds, which could enhance market transparency, reduce costs, and improve liquidity, potentially accelerating crypto adoption. Regulatory developments like the GENIUS Act may drive this growth, impacting trading volumes and institutional interest in blockchain assets.

According to Eric Balchunas, ETFs charging 0-10 basis points (Vanilla) hold 59% of assets under management but contribute only 16% to industry revenue, while ETFs charging over 51 basis points (Hot Sauce and Boomer Candy) represent 6% of AUM but generate 28% of revenue (source: Eric Balchunas, Twitter, May 16, 2025). This significant revenue concentration in higher-fee ETFs explains the surge in new product launches within these categories. For crypto traders, this trend highlights institutional appetite for niche, high-margin products, setting a precedent for similar developments in crypto ETFs and tokenized fund products as traditional finance seeks new revenue streams.