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NEWSLETTER | 14 Oct 2022

BlackRock reported this week that September saw a slowdown in global flows into ETPs, down to USD35.9 billion in September from USD51.2 billion in August, driven, the firm says, by a halving of fixed income buying (USD12.0 billion in September vs. USD23.3 billion in August).

The firm writes that the drop in fixed income flows at the headline level masked huge dispersion below the surface. Better news lies in equities with equity flows holding up relatively well, falling from USD31.4 billion in August to USD31.0 billion in September, while commodities continued their outflows for a fifth consecutive month (-USD6.9 billion).

The challenging markets continue to have their impact on ETFs – not just lowering asset flows but also in forcing issuers and others to be creative in their efforts. Europe’s Equiduct, the pan-European retail exchange, is showing signs of growth in ETP appetite, having announced this week that it has expanded its range of ETPs trading in Apex to include a further 314 ISINs.

The firm writes that over five million retail investors have access to Apex and now the firm is expanding its range of assets classes, exposure and geographies to include commodity, fixed income and currency ETPs, plus crypto ETPs, with an offering from 21Shares.

Our interview this week with Matteo Dante Perruccio from digital asset manager Wave Financial saw him expressing cautious views on the strength of the ETP sector in Europe for crypto-based products.

He cites the speculative run up on bitcoin against which the ETP market boomed up until the onset of the crypto winter earlier this year. "I saw the ETP market boom and it was the worst time to buy bitcoin. I am not sure it’s the right approach for most investors but can see why it appeals from an investment process perspective and as volatility diminishes it will play a greater role as an access product."

Do register for our latest outing with Europe’s white labelling firm HANetf and Asset TV. Are there more socially responsible ways to gain exposure to gold, the firm asks.

Register here to join the debate.

Beverly Chandler, Managing Editor

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Companies in this issue

21Shares
Amundi
Distillate Capital
Equiduct
Goldman Sachs Asset Management
GraniteShares
Nightshares
Tabula Investment Management
Valour
VanEck
Victory Capital
Vinter

Equiduct expands range of ETPs on Apex

Equiduct, the pan-European retail exchange, has announced that it has expanded its range of ETPs trading in Apex to include a further 314 ISINs.

The September ETP report from iShares by BlackRock reveals that global flows into ETPs fell to USD35.9 billion in September, down from USD51.2 billion in August, driven by a halving of fixed income (FI) buying (USD12.0 billion in September vs. USD23.3 billion in August).

An ETF with heart

Bailey McCann writes that a new ETF from New York Life Investments is supporting social impact funds from the American Heart Association.

With some 35 years of experience in institutional asset management, Matteo Dante Perruccio is now at the forefront of the crypto asset management world, in his role as President International of Wave Financial (Wave), a SEC regulated digital asset investment manager with more than USD1 billion in AUM.