ETF bigwigs rally as assets boom and bitcoin fund remains banned
As some of the world’s biggest players in the exchange-traded fund world gather in Miami for one of the largest annual gatherings, ETF Exchange, the industry finds itself at a critical crossroads as inflation rages, fueling market volatility and placing the Federal Reserve between a rock and a hard place.
Nonetheless, money is flowing into ETFs as investors look for attractive, cost-effective strategies to capture trends such as rising inflation, volatility and even unrest in Russia. Inflows topped $900 billion in new assets in 2021 and a further $205 billion through Q1 2022. The entire universe of US-listed ETFs now exceeds $7 billion, versus less than $5 billion in 2020, according to industry data.
MORGAN STANLEY TO ENTER THE WORLD OF ETFs
“With over 2,000 attendees spanning every area of the ETF ecosystem, we’ve been able to provide the advisor community with an opportunity to connect, learn and have a little fun” Tom Lydon, CEO of ETF Trends and conference sponsortold FOX Business.
MANCHIN LAMBASTES BIDEN ADMIN, FEDERAL RESERVE ON SLOW INFLATION RESPONSE: ‘WHEN WILL THIS END?’
On Tuesday, billionaire hedge fund manager Jeff Gundlach of DoubleLine Capital delivered his view on the economy predicting that inflation has peaked but will remain elevated. This after the consumer price index jumped 8.5% in March, the highest since 1981, according to the Bureau of Labor Statistics. He also suggested that the Federal Reserve might be off the mark in its inflation outlook.
Cathie Wood, ARK’s high-profile investment guru with a focus on innovation, is also in attendance, along with Bitcoin pioneer and investor Michael Saylor, president and CEO of MicroStrategy.
|ARKK||ARK ETF TR INNOVATION ETF||59.80||-0.10||-0.17%|
As of April 4, 2022, the business intelligence firm through its MacroStrategy arm held “129,218 bitcoins, which were acquired at an aggregate purchase price of approximately $3.97 billion and an average purchase price of approximately $30,700 per bitcoin, including fees and expenses, with MacroStrategy holding approximately 115,110 of those bitcoins,” as detailed in a filing with the Security and Exchange Commission.
Michael Sonnenshein, CEO of Grayscale Investments, the world’s largest digital currency asset manager, also participated. The company recently called on the public to pressure the SEC to approve the conversion of its Bitcoin Trust into an ETF, which would make it the first pure Bitcoin ETF to gain approval if permitted.
This year, Bitcoin has fallen around 15%, now trading around the $40,000 level on Tuesday. Its all-time high in 2021 was $68,990.90.
Despite the volatility, the industry and retail investors continue to clamor for a pure Bitcoin ETF. Still, the SEC denied Van Eck and Fidelity’s claims citing handling and fraud prevention issues. An application from Bitwise remains in the queue with the SEC requesting more product information.
ETF BITWISE BITCOIN NOT DEAD YET
|BITO||PROSHARES TRUST STRATEGY BITCOIN ETF||24.49||-0.42||-1.69%|
|GCC||WISDOMTREE TRUST IMPROVED COMMODITY STRATEGY||25.91||+0.53||+2.09%|
|BITQ||TRADE CONCEPTS ON EXCHANGE TRUST BITWISE E CRYPTO INNOVATORS||2:40 p.m.||-0.25||-1.71%|
FIDELITY BITCOIN ETF SEC RULES
Other ETFs that offer exposure to Bitcoin or cryptocurrencies include ProShares Bitcoin Strategy ETF, WisdomTree’s Enhanced Commodity Strategy Fund, and Bitwise Crypto Industry Innovators ETF.