J.P. Morgan’s $100M Ethereum Tokenized Fund Launches; Markets Remain Skeptical
J.P. Morgan has gone live with a $100 million tokenized fund on Ethereum, offering a blockchain-native vehicle aimed at institutional and accredited investors. The product converts traditional fund shares into on-chain tokens for trading and settlement, a move the bank pitches as a way to speed up post-trade processing and broaden distribution. Despite the headline figure, early on-chain inflows and secondary activity have been modest, and traders say the launch hasn’t materially moved ETH markets.
The launch is significant as another major financial firm testing tokenization at scale, but market skepticism reflects unresolved issues: custody models, regulatory clarity, and whether tokenized funds will attract sustained client demand. Short-term impact may be limited, yet the experiment will be watched closely — strong inflows and active secondary trading would signal deeper institutional adoption, while continued hesitancy would underline persistent frictions in bridging traditional finance and crypto.