Tokenization Revolutionizes Portfolio Management

Tokenized Assets Could Transform Investment Strategies

• The efficient markets theory has been foundational to modern portfolio theory since the 1960s.
• Index funds, based on this theory, have become standard for managing pensions and retirement accounts.
• Tokenization offers a way to expand investment options beyond traditional assets like U.S. equities and government bonds.
• Currently, alternative strategies make up only 15–20% of most funds.
• The shift towards tokenized assets may take about a decade to develop fully.

Index funds have dominated due to their reliability and data transparency, but tokenization could broaden asset classes by providing new data sources, potentially altering investment strategies significantly over time.