Insights

If ETFs are the fastest-growing investment vehicle in the world, why are so many investors in Latin America still watching from the sidelines?

By June 2025, the global ETF industry had reached $13.74 trillion in assets under management, with $818 billion in net inflows in just six months—the strongest pace of growth in history. Yet, for many non-U.S. investors, direct access remains limited. How much wealth has been missed simply because the doors were never fully open?

What Exactly Are Tokenized ETFs?

Tokenized ETFs are digital versions of traditional exchange-traded funds, issued as blockchain tokens and backed 1:1 by the underlying asset.

But here’s the twist: unlike traditional ETFs, tokenized versions can be traded 24/5, bought in fractions starting from $1, and even withdrawn to your own crypto wallet.

So if ETFs have been booming for decades, what happens when their access suddenly becomes borderless?

Why Latin America Should Pay Attention

For years, Latin American investors have faced barriers:

• Limited or costly access to U.S. ETFs.

• Smaller, less liquid local markets.

• Exclusion from one of the most powerful wealth-building tools in finance.

Now, with Kraken’s xStocks live in more than 185 countries, including across Latin America, those barriers are starting to break.

So the question is: if global investors are already stepping in, why wait until the shift knocks on your door?

The Sweet Spot: Benefits of Tokenized ETFs

• 24/5 Trading – Why be limited by Wall Street hours when blockchain never sleeps?

• Fractional Access – If you could invest in an ETF with just $1, would you hesitate?

• Auto-Reinvested Dividends – What if your earnings worked for you instantly, without paperwork?

• Self-Custody – Would you prefer to hold your assets in your own wallet instead of relying on a third party?

“For the first time, people all over the world can own and use a share of a tokenized stock like they would use money,” said Arjun Sethi, Co-CEO of Kraken. “You can move it, hold it, spend it or borrow against it. All from your wallet, with no intermediaries, no borders and no delays.” (PR Newswire, Aug 2025)

Real Expansion, Real Momentum

• Kraken has launched 60+ tokenized U.S. stocks and ETFs. 

• Available in 185+ countries (outside the U.S.), with growing traction in Latin America.

• Integrated with DeFi protocols on Solana, opening new ways to use tokenized ETFs beyond simple holding.

So if ETFs already doubled their global scale in the past decade, how fast could tokenized ETFs grow once they reach under-served markets?

Risks You Should Know

Of course, no innovation comes without questions:

• Tokens don’t grant shareholder rights—only price exposure.

• Liquidity can sometimes diverge from the underlying price.

• Regulations are still evolving in many regions.

But isn’t every financial revolution born in uncertainty?

The Real Question is...

Tokenized ETFs aren’t a distant idea—they’re already live across 185 countries. The real question is not if they will reshape financial access, but when you’ll decide to understand them.

At Dezentra Consulting, we focus on exploring opportunities and educating markets about the future of finance. This is not investment advice—it’s an invitation to think ahead.

Dezentra Consulting provides insights into how tokenization is reshaping financial markets worldwide. We don’t provide investment advice—our role is to highlight the opportunities and spark dialogue on the future of finance.