Hashdex Officially Launches in Europe
A number of exciting new crypto ETPs launched last week including the 21Shares ByteTree gold and Bitcoin ETP.
Brazilian crypto asset manager Hashdex, officially launched their first crypto ETP in Europe and in the U.S., and more regulatory scrutiny as Finra launches a probe into “complex” ETF usage by retail investors.
Fund Launches and Updates
21Shares in partnership with ByteTree Asset Management launched the first ever ETP combining Bitcoin and gold. The 21Shares ByteTree BOLD ETP (ticker BOLD) is listed on SIX and has a TER of 1.49%.
Gold has been assigned a higher weighting of 81.5% at launch, while Bitcoin has an 18.5% weighting. Bloomberg
UBS has launched the UBS (Lux) Fund Solutions.
Bloomberg MSCI US Liquid Corporates 1-5 Year Sustainable UCITS ETF sub-fund aims to track, before expenses, the price and income performance of the Bloomberg MSCI US Liquid Corporates 1-5 Year Sustainable Index (Total Return). TER 20bps ETF World
In Canada, RBC iShares launched four iShares Megatrends ETFs on the Toronto Stock Exchange.
The news funds are: the iShares Exponential Technologies Index ETF, the iShares Global Clean Energy Index ETF, the iShares Genomics Immunology and Healthcare Index ETF, and the iShares Cybersecurity and Tech Index ETF.
Expense ratios range from 35bps to 39 bps. Globe Newswire
In the U.S., BlackRock is the most recent firm to intro a crypto ETF with their launch of the Blockchain and Tech ETF (IBLC).Cointelegraph
Invesco expanded its Invesco Commodities ETF Suite with the launch of Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (EVMT).
EVMT is an actively managed ETF designed to provide economic exposure to the commodities widely used in the production of electric vehicles.PR Newswire
The Lion-OCBC Securities Singapore Low Carbon ETF, with AUM of $43m at launch, has been listed on the Singapore Exchange. Fund Selector Asia
Samsung Asset Management Company (SAMC) is expected to list a blockchain ETF on the Hong Kong Exchange during the first half of 2022 and will be a first for Asia.
This comes on the heels of SAMC’s 20% stake in Amplify Holding Company, a U.S. ETF sponsor. Bitcoin.com
Fund Flows and Trading Volume
Flows into ESG ETFs amounted to €13bn in the first quarter, less than half of the €27bn that went into them in Q4 2021, Morningstar European data revealed.
Just 30.4% of total money put into ETFs in Europe in Q1 went into ESG funds, down from the 79% record high in Q4 last year.
Flows into thematic ETFs amounted to €0.6bn in Q1 2022, down from €2.1bn in the previous quarter.
Morningstar observes that this was the first quarter since 2019 in which thematic ETFs failed to attract at least €1bn of net inflows.
Investors have also rushed into gold funds and broader commodity plays, with gold exchange traded products offered by Invesco and iShares taking in almost €5bn between them.
European Bond ETF sales fell from €8.4bn in the final quarter of 2021 to €5.1bn in the first three months of this year. FT
While waiting for a spot bitcoin ETF to be approved in the U.S., Grayscale Investments is rumoured to be planning a possible expansion to Europe.
The fund manager, whose $36bn of assets are invested in funds tracking digital tokens, is holding a series of meetings with possible partners, according to Michael Sonnenshein, chief executive.
History repeats itself once again, as US regulators are scrutinising the sale of “complex” ETFs to retail investors sending some ETF issuers in a panic.
This is not the first time Finra has asked for feedback on sales practices for “complex products” amid a surge in trading by small investors of some relatively complicated vehicles.
It is not clear on the formal definition as to what Finra means by “complex product” causing a lot of confusion for the industry.
Finra said it was “a product with features that may make it difficult for a retail investor to understand the essential characteristics of the product and its risks”.
After a launch delay in Australia last week for the first spot crypto ETF, it looks like Toronto-based 3iQ Digital Asset Management could make history by listing Australia’s first cryptocurrency ETF.
According to the Australian Financial Review, the crypto specialist firm quietly lodged disclosure documents with the Australian Securities and Investments Commission late last week.
In those documents it was revealed plans to quote the 3iQ CoinShares Bitcoin Feeder ETF and 3iQ CoinShares Ether Feeder ETF on the Cboe Australia exchange.
Industry reacts to IOSCO’s ETF good practice proposals. ETF Stream
Fidelity to offer Digital Asset investment as part of retirement plans. FX Empire