Crypto ETPs are having a tough run of it.

There is an oversupply of some products e.g. Bitcoin ETPs, flows are weak, the SEC is proving stubborn in their stance and the market is blighted with bad actors. So, not really that surprising to see 21Shares close a couple of funds this week.

We are sure others will follow.

But, can it make a comeback, and who will be left standing if/when that time comes again? That is the question.

It is still a super interesting part of the market, lots of cool things are being done so time to hold your nerve if you are a believer.

 

 

Fund Launches and Updates

 

EMEA

 

HANetf launches energy transition materials ETF. The Sprott Energy Transition Materials UCITS ETF (SETM) will provide investors with a way to access the critical materials required for the energy transition.

The ETF is listed on London Stock Exchange 14 March, and will also list in Germany on 16 March and in Italy on 30 March. investmentweek

Global X has expanded its crypto range with the launch of chainlink, Uniswap and aave exchange-traded products (ETPs).

The Global X Aave ETP (AVMX), the Global X Chainlink ETP (LI0X) and the Global X Uniswap ETP (UNIX) are listed on Deutsche Boerse with TERs of 0.99%. etfstream

Crypto ETP provider 21Shares is to close some funds as demand fades.

The 21Shares S&P Risk Controlled Bitcoin Index ETP (ticker SPBTC), the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH), the 21Shares DeFi 10 Infrastructure ETP (DEFII), the 21Shares Crypto Layer 1 ETP (LAY1) and the 21Shares USD Yield ETP (USDY) will close on April 6. bloomberg

Fidelity International has expanded its Paris-Aligned Benchmark (PAB) climate fixed income range with the launch of a global government bond ETF.

The Fidelity Global Government Bond Climate Aware UCITS ETF (FGGB) is listed on the London Stock Exchange, Deutsche Boerse, SIX Swiss Exchange and the Borsa Italiana with a TER of 0.20%

Horizon Kinetics enters Europe race with active inflation ETF.

The Horizon Kinetics Inflation Beneficiaries UCITS ETF (INFBN) is set to list on the Euronext Amsterdam with a TER of 0.85%. Will be interesting to see if they have the ability to swim with the sharks. etfstream

 

AMERICAS

 

FirstTrust launch the First Trust Bloomberg Inflation Sensitive Equity ETF (NYSE Arca: FTIF), a new ETF that invests primarily in U.S. exchange-listed companies within sectors that are expected to benefit, either directly or indirectly, from rising prices. etftrends

Bridgeway Capital Management, a Texas-based asset manager has launched its second ETF, an actively managed fund providing broad exposure to value-oriented US small-cap equities.

The EA Bridgeway Omni Small-Cap Value ETF (BSVO US) has been listed on Nasdaq with an expense ratio of 0.47%. etfstrategy

JP Morgan Asset Management has launched a new actively managed equity ETF in the US focused on stocks listed in the Greater China region.

The JPMorgan Active China ETF (JCHI US) has been listed on NYSE Arca with TER of 0.65%. etfstrategy

American Century adds new floating Income ETF.

The American Century Multisector Floating Income ETF (FUSI US) has been listed on NYSE Arca with an expense ratio of 0.27%. nasdaq

 

ASIA-PACIFIC

 

After less than three years, Vanguard is planning to pull out of its China fund advisory joint venture with technology giant Ant Group and closing its Shanghai-based wholly owned foreign entity. ignites

Nine Chinese fund firms have applied to launch new exchange-traded funds designed to track the performances of state-owned enterprises in the country. The applicants include:

E Fund Management, China Universal Asset Management, GF Fund Management, China Merchants Fund Management, China Southern Asset Management, Bosera Asset Management, Harvest Fund Management, ICBC Credit Suisse Asset Management and Yinhua Fund Management. ignitesasia

 

CLICK to listen stories from inspiring leaders. This week we speak with Bradley Duke, co-CEO at ETC Group.

In this conversation we hear Bradley talk about why he is most happy when building, how he got into crypto, why recruitment is still one of his biggest challenges and why producing electronic music is his secret love.

Flows

 

Actively managed ETFs continue to rake in cash.

Actively managed exchange-traded funds saw roughly $9 billion of net inflows last month, while their passively managed counterparts had net outflows totalling about $6.5 billion, Morningstar’s February U.S. fund flows report shows. pionline.com

Global ETFs gathered USD19.96 billion in net inflows during February bringing year to date net inflows to USD79.79 billion, ETFGI report.

ETFs in Europe gathered net inflows of USD8.61 billion bringing year-to-date net inflows to USD27.94 billion

Digital asset investment products saw outflows for the 6th consecutive week totalling US$95m, with the 5-week total being US$406m, representing 1.2% of total assets under management (AuM).

Bitcoin remained the focus of negative sentiment, seeing outflows in investment products totalling US$113m last week. etf.com

CoCo bond ETFs plummet as $17bn Credit Suisse AT1s wiped out. etfstream

 

Noteworthy

 

BlackRock’s S&P 500 UCITS ETF has been tokenised by structured product specialist Backed Finance with the launch of CSPX Core S&P 500 (bCSPX), a first-of-a-kind product on the ethereum blockchain. etfstream

Whilst this is cool in itself, what problem is it actually solving for clients?

CSPX is a super liquid product and easy to trade so what’s the point of having it tokenised?

 

Additional reads

 

Bitwise hopeful for a spot bitcoin ETF, but sees no ‘path forward’ at SEC now. pionline.com

Sustainable exchange traded funds are often cheaper than their non-sustainable peers, analysis from Refinitiv Lipper on the European ETF industry shows. ft

  

From Behind the Desk

 

In a few weeks we will be releasing a new report titled ETF Distribution 2.0.

In this white paper we will examine questions like how distribution has changed post COVID, how important are online platforms becoming in the sales process, what do future ETF teams look like and many more. The scope of the report is global and covers the US, Canada, LATAM,  Europe, Asia and Australian markets.

If you are a head of an ETF distribution team and would like to participate then please let us know.