While asset management product teams were already busy adapting to tax customization, active exchange-traded funds ( ETFs ) and building greater exposure to private markets, a transformed political and regulatory environment has accelerated the timeline for dual share class products to reach market, spiked interest in distributing private market allocations via defined contribution ( DC ) plans and increased attention to tokenization, according to a recent report.

This dynamic has led to significant industry changes – and an exceptional volume of work for product development groups, finds The Cerulli Report – US Product Development 2025.

As the pace of change intensifies and firms focus on a range of initiatives, the report notes, product groups face strategic decisions regarding resource allocation and prioritization.

The research homes in on active and dual share class ETFs, building private markets exposures and tokenization as potential areas of focus. Nearly all asset managers, according to Cerulli, view the ETF structure as a large opportunity ( 96% ) as the industry continues to focus on developing and distributing active ETF product.

While 74% of firms that offered or were evaluating offering ETFs in 2025 were considering use of the ETF share class, the report shares, few are planning to launch entire suites of such product.

Just as important as the push into ETFs is the push towards retail access to growing private markets. Asset managers are investing both capital and effort into the initiative, but Cerulli notes that tremendous market competition is likely to make distribution increasingly challenging. Overall, 65% of managers that offer interval fund products perceive a large distribution opportunity for the structure, and 87% plan to develop brand new strategies.

Meanwhile, the private markets in DC plans opportunity, the report points out, is gathering meaningful momentum, which will take sustained effort to reach scale for product manufacturers. Use of the collective investment trust structure and its rails has emerged as the go-to solution for including private market strategies within target-date funds.

Last, while tokenization is likely to receive tremendous attention in coming years, it will be a long-term initiative beyond the most obvious use cases that result in efficiency improvements and cost savings. “The existing tokenization opportunity is most heavily focused on cryptocurrency ETFs and money market products, but will shift to real-world assets over time,” says Daniil Shapiro, Cerulli’s product development director. “Pursuing partnerships with blockchain-focused firms could benefit those lacking in-house expertise. Beyond the largest managers and custodians, taking a wait-and-see approach to tokenization may also work well

Overall, Shapiro adds: “Asset managers have several avenues for accessing the active ETF opportunity, including launching new active ETFs ( either replicated, tweaked or brand-new strategies ) and conversions from mutual funds. The substantial volume of competing demands across products and asset classes, as well as distribution challenges, will continue into 2026 and beyond.”