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ETF issuers introduced 1,063 new ETFs in the first seven months of 2024, a year-to-date record, according to data from research and consulting firm ETFGI.
The total surpasses the previous record of 988 set over the same period of 2021.
“The growing acceptance of the ETF wrapper as an investment vehicle that covers all types of asset classes, and index and active, is shaping the adoption in a number of different ways,” said Deborah Fuhr, managing partner and founder of ETFGI. She noted that pension fund and asset owners are increasingly embracing ETFs, both as tool for their own use and as a means to enhance diversification.
Issuers have been trying to meet soaring demand for ETFs this year. According to ETFGI, assets invested in the global ETFs industry reached a record of $13.6 trillion at the end of July. The industry gathered $216.6 billion in net inflows in July, bringing year-to-date net inflows to $947 billion.
After accounting for 314 closures, the net increase stands at 749 products, ETFGI reported. This momentum has continued into August, with ETFGI reporting 27 new product launches and 9 closures during the week of Aug. 12, resulting in a net increase of 18 products.
Cryptocurrency ETFs Dominate New ETF Launches
The United States leads with 363 new funds, followed closely by the Asia Pacific region (excluding Japan) with 341, and Europe with 171. The distribution of new products spans 39 exchanges globally, involving 281 providers.
Among the new products, actively managed funds lead with 461 products, followed by 374 equity and 104 fixed income offerings. Cryptocurrency ETFs have emerged as a strong force in asset accumulation.
The iShares Bitcoin Trust (IBIT) holds the top spot with nearly $20 billion in assets, followed by the Grayscale Bitcoin Trust ETF (GBTC) with $13.2 billion in assets and the Fidelity Wise Origin Bitcoin Fund (FBTC) with $10.1 billion in assets, according to etf.com data.
The approval of Ethereum ETFs by the U.S. Securities and Exchange Commision in July has further fueled this trend. The Grayscale Ethereum Trust (ETHE) rose to fourth place among new funds, amassing $6.6 billion in assets at the time of the report. ETHE has since dropped down to $4.8 billion in assets, thanks to the $2.4 billion in outflows since its launch, according to etf.com data.
Global ETF Industry Growth
The week of Aug. 12 had a diverse array of launches, including 15 actively managed ETFs, seven index equity ETFs, four leveraged ETFs and one index fixed income ETF, according to ETFGI data. At the end of July, the global ETF/ETP industry had 12,565 ETFs/ETPs, with 25,135 listings, from 757 providers on 81 exchanges in 63 countries.
Fuhr noted that “ETFs are a unique product that cuts across all types of clients and offers the same toolbox at a low or cost-efficient fee to everyone.” She added that this broad appeal contributes to the growth and acceptance of ETFs as a tool for retail investors, financial advisors and institutional investors worldwide.
Fuhr predicted that net inflows would set a new record for the year.
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