According to Woofun AI, Kraken co-CEO Arjun Sethi has firmly dismissed the view that tokenized stocks will replace Bitcoin (BTC) and Ethereum (ETH), establishing diversified capital allocation as the norm for the industry.
Speaking to CNBC on Wednesday, Sethi argued against reducing cryptocurrency to a single speculative asset class made up of BTC, ETH, altcoins and memecoins.
He noted that capital is always moving, and that US investors are currently turning their attention toward artificial intelligence (AI) and emerging technologies, causing funds to flow out of native crypto assets into perpetual futures, companies that have not yet held an initial public offering (IPO), and tokenized equities.
This flow does not crowd out capital from the crypto market, but rather resembles a common trend seen across gold and commodities, and remains part of the broader crypto liquidity ecosystem.
Data compiled by Woofun AI shows that Asia, as the fastest-growing region, is best positioned to benefit from the asset expansion brought about by tokenization technology.
Sethi believes that crypto's global, permissionless accessibility is its core advantage. As monetary conditions change, capital may flow back into Bitcoin, while tokenization technology will further expand the range of assets that can be traded through crypto channels, which is a healthy state of affairs.
From a structural standpoint, deepening institutional participation is the foundation supporting this trend. Over the past two years, institutional investors have steadily increased their involvement in BTC, ETH, stablecoins and crypto infrastructure, showing recognition of the long-term value of the crypto ecosystem.
ETF data provides evidence of the strength of this institutional influx. As of August 2026, net inflows into Bitcoin ETFs reached $3.5 billion, the highest level since October 2025; meanwhile, net inflows into Ethereum ETFs stood at $1.85 billion, also the highest since August 2025.
This marks another landmark moment in the optimization of market liquidity structure, following traditional finance's full embrace of crypto assets.