Americas ETP News
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New ETF offers leveraged exposure to emerging markets but excludes China
February 7, 2024--Direxion, a U.S. asset manager specializing in leveraged exchange-traded funds (ETFs), on Wednesday rolled out a new product allowing investors to bet on gains in the MSCI Emerging Markets ex-China Index.
As China's stock market has struggled to emerge from a years-long slump, investor appetite for emerging markets funds that exclude exposure to the world's second-largest economy has surged. According to data from LSEG Lipper, China-focused funds domiciled outside of that country saw outflows of $1.54 billion in 2023 alone, and an 18.8% drop in assets under management.
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Source: reuters.com
CBO-The Budget and Economic Outlook: 2024 to 2034
February 7, 2024--In CBO's projections, federal budget deficits total $20 trillion over the 2025-2034 period and federal debt held by the public reaches 116 percent of GDP. Economic growth slows to 1.5 percent in 2024 and then continues at a moderate pace.
The Federal Budget
The deficit totals $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. Thereafter, deficits steadily mount, reaching $2.6 trillion in 2034. Measured in relation to gross domestic product (GDP), the deficit amounts to 5.6 percent in 2024, grows to 6.1 percent in 2025, and then shrinks to 5.2 percent in 2027 and 2028. After 2028, deficits climb as a percentage of GDP, returning to 6.1 percent in 2034. Since the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007-2009 financial crisis, and the coronavirus pandemic.
Debt held by the public increases from 99 percent of GDP at the end of 2024 to 116 percent of GDP-the highest level ever recorded-by the end of 2034. After 2034, debt would continue to grow if current laws generally remained unchanged.
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Source: CBO (Congressional Budget Office)
What lies ahead for active ETFs?
February 6, 2024--Report highlights tailwinds from growing advisor awareness and cost benefits, as well as regulatory areas to watch.
Despite its limited profile in the investment fund landscape, the active ETF industry has seen remarkable growth in recent years- and the near term could prove to be a pivotal chapter in this Cinderella story.
According to a new report from ISS Market Intelligence, active exchange-traded funds have witnessed a surge in interest, reaching $422 billion in assets by mid-year 2023. This represents a significant jump, with these ETFs attracting $47 billion in net new flows in the first half of 2023 alone.
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Source: investmentnews.com
US SEC delays decision on Grayscale, BlackRock's spot Ethereum ETFs
January 25, 2024--The U.S. Securities and Exchange Commission (SEC) delayed on Thursday its decision on an application by crypto asset manager Grayscale Investments to convert its Ethereum trust product into a spot exchange-traded fund (ETF).
The U.S. markets regulator also on Wednesday delayed its decision on finance industry heavyweight BlackRock's (BLK.N)
, opens new tab application to launch a similar product, exchange filings showed.
A spot crypto ETF tracks the market price of the underlying digital asset, giving investors exposure to the token without having to buy the currency.
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Source: reuters.com
SEC Adopts Rules to Enhance Investor Protections Relating to SPACs, Shell Companies, and Projections
January 24, 2024--The Securities and Exchange Commission today adopted new rules and amendments to enhance disclosures and provide additional investor protection in initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and in subsequent business combination transactions between SPACs and target companies (de-SPAC transactions).
SPAC IPOs and de-SPAC transactions can be used as a means for private companies to enter the public markets. Given the complexity of these transactions, the Commission seeks to enhance investor protection in SPAC IPOs and de-SPAC transactions with respect to the adequacy of disclosure and the responsible use of projections. The rules also address investor protection concerns more broadly with respect to shell companies and blank check companies, including SPACs.
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Source: SEC.gov
What Do Bitcoin ETFs Mean For the Future of Crypto? Regulators and Investors Weigh In
January 22, 2024--"Now you have these big names like Fidelity and BlackRock with these products, and that provides comfort to investors who may have been nervous."
On Jan. 10, the SEC approved 11 spot Bitcoin exchange-traded funds (ETFs), unprecedentedly allowing crypto-backed ETFs to trade on public markets.
Within 24 hours, Bitcoin ETF trading volume ballooned to $4.6 billion, and Bitcoin price rose above $48,000 at one point. But the hype fizzled out quickly, with Bitcoin dropping more than 8 percent two days after the SEC's milestone decision.
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Source: observer.com
Passive eclipses active in US fund market as assets swell to $13.3t
January 19, 2024--Passively managed US mutual funds and ETFs have, for the first time, amassed more money than their actively managed counterparts. Investors have poured a net $2.5t into passive ETFs from 2019 to 2023, far more than the nearly $400b absorbed by passive mutual funds.
A decade ago passive funds held about a quarter of the US mutual fund and ETF market, according to Cerulli Associates, a financial research firm. Despite occasional periods of outperformance, active managers have largely fallen short of passive counterparts in recent years.
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Source: news.fintech.io
Spot Bitcoin ETF Trading Volume Exceeds $10bn
January 17, 2024-Total trading volume for the 11 new bitcoin ETFs in the US exceeded $10bn in their first three days, higher than the trading volume of all the ETFs launched in 2023 over the same time period.
The US Securities and Exchange Commission finally approved the listing and trading of 10 spot bitcoin ETFs on 10 January 2024, and approved the conversion of the Grayscale Bitcoin Trust into an ETF, and they all began trading the following day.
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Source: marketsmedia.com
Investors pump record sums into bond and 'quality' stock ETFs
January 15, 2024--Global inflows of $965bn last year was the second highest tally on record
Exchange traded fund investors pumped record sums into fixed income and "quality" stocks last year as risk appetite jumped in the final months of 2023.
However inflation-linked bond funds and broad commodity ETFs experienced record outflows as sliding global inflation tempered investors' desire to hedge against its corrosive effect on asset prices.
Overall, the global ETF industry recorded net inflows of $965bn last year, according to data from BlackRock, up from $867bn in 2022. This was the second-highest figure on record, behind 2021's $1.3tn.
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Source: ft.com
BlackRock strikes $12.5 bln deal for Global Infrastructure Partners
January 12, 2024--BlackRock to pay $3 bln in cash and roughly 12 mln in shares
Cohen new chief product officer, GIP's Ogunlesi to join board
BlackRock had been on the hunt for big acquisition
Quarterly profit $9.66 per share vs forecast $8.84
BlackRock (BLK.N), opens new tab said on Friday it would buy Global Infrastructure Partners (GIP) for $12.5 billion in a major bet on alternative assets and announced a shake-up of its top management.
The deal, which includes $3 billion in cash and 12 million BlackRock shares, will put the asset management giant at the heart of investing in ports, power, and digital infrastructure projects around the globe. Once the deal closes, the firm will hold approximately $150 billion in infrastructure assets across a portfolio that ranges from the U.S. liquefied natural gas export market to wastewater services in France to airports in England and Australia.
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Source: reuters.com