On June 5th, the SEC brought together regulators, industry leaders, and experts to discuss the evolving asset management landscape at its 2025 Conference on Emerging Trends in Asset Management. This year’s event focused on the latest innovations, regulatory developments, and challenges facing the industry, with particular attention to technological advancements, shifting investor expectations, and the global economic environment. Panelists discussed how these trends might shape the future of asset management and highlighted the importance of adaptability and forward-thinking strategies in increasingly complex capital markets.
The conference featured distinguished speakers, including senior SEC officials Natasha Vij Greiner (Director, Division of Investment Management), Hester Pierce (SEC Commissioner) and past leaders of the Division of Investment Management, as well as prominent asset management executives and leading academics. Below, we share some highlights.
Digital Assets and Tokenization
The panelists discussed the growing significance of digital assets and tokenization of traditional financial products. Panelists, including executives from Andreessen Horowitz, DTCC, Copper, and Franklin Templeton, explored how blockchain technology is reshaping in which assets are recorded, transferred, and managed. They highlighted the concept of digital scarcity—where assets have intrinsic online value, and do not simply exist as digital representations of real-world items. The discussion emphasized the evolution of tokenized products, such as Franklin Templeton’s Benji fund, which leverages blockchain to provide real-time ownership records and seamless transfers. This type of innovation allows holders to monitor their positions instantly, bypassing traditional intermediaries and periodic reporting. While retail investor adoption is still limited, institutional interest is strong, particularly among crypto-native trading accounts that value the efficiency and immediacy of blockchain-based collateral management.
Panelists addressed operational benefits of blockchain, such as synchronized recordkeeping, 24/7-365 settlement, access to global liquidity pools that are efficient and transparent, and the ability to move collateral rapidly. One panelist opined that capabilities like this could have mitigated past financial crises. They noted ongoing challenges including the need for operability across various jurisdictions and platforms, scalable infrastructure, cybersecurity protections and privacy concerns.
Product Proliferation and Innovation in Registered Funds
Another panel, featuring representatives from BlackRock, Dimensional Fund Advisors, and SEC representatives, focused on the proliferation of investment products, particularly ETFs, in the wake of the 2008 financial crisis. Panelists discussed the balance between offering investors more choice and the risk of overwhelming them. Panelists noted that while ETFs have become a primary vehicle for innovation, interval funds and other structures are also evolving to meet investor needs. They highlighted the importance of data and transparency, especially as private markets become a larger part of the investment landscape.
Retail Access to Private Markets
The final panel examined growing interest in providing retail investors with access to private markets, which have traditionally been the domain of institutional investors. Opening private markets to retail investors presents both significant opportunities and notable challenges. Economic growth is increasingly concentrated in private markets. As public markets have been declining in relative importance over the past decade, retail investors are seeking new avenues for growth and diversification. By expanding access, individual investors could participate in deal flow and investment strategies heretofore reserved for institutions, potentially enhancing returns and broadening their opportunities. Panelists cautioned that private assets are often illiquid, opaque, and expensive.
Looking Ahead
Throughout the day, as panelists noted that the novel ideas of today, like tokenized funds and AI-driven investment tools, become mainstream products, the asset management industry will have to grapple with integrating technologies safely. As technology continues to advance, the industry’s focus remains on balancing innovation with transparency, security, and investor protection.
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