Get ready for even more bitcoin and other exotic ETFs in 2022

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Many Bitcoin ETFs were launched in 2021, with more probability in 2022. Several experts even predict that there could be new ETFs for Ethereum and other cryptocurrencies.

Expect even more esoteric funds to be launched as well.

Fund firm Defiance has just launched a new Digital Revolution ETF for companies doing more business with non-fungible tokens, or NFTs, the digital assets stored on a blockchain that have become popular in the art world. and collectibles.

The Defiance NFT ETF is index-based and owns shares of companies such as Bitcoin Bank Silvergate (SI), eBay (EBAY), pop culture figure giant Funko (FNKO) and owner of Playboy Plby. Other passively managed index-based ETFs remain popular. Cathie Wood from Ark Invest has just launched a new fund linked to an index of companies which obtain good results for the transparency of companies.

Ark also offers a family of actively managed ETFs, in which managers choose individual stocks or other assets instead of relying on indices.

More actively managed ETFs to compete with passive index funds

Natixis Investment Managers said in a recent report that it expects the amount of assets in actively managed ETFs to double in 2022 starting this year. And more and more companies are looking to launch actively managed ETFs that focus on niche areas of the stock market.

Fund firm VanEck, one of the asset managers that recently launched a bitcoin futures ETF, also has a new ETF actively geared towards agricultural technology.

This fund, named VanEck Future of Food ETF, carries the eccentric symbol YUMY and owns shares in companies such as indoor farming company AppHarvest, vegetable milk producer Oatly and tractor manufacturer Deere (DE).

There should also be more active international ETF launches.

Mutual fund giant Vanguard said late last month that it plans to introduce a China Select Stock Fund, which will buy shares of companies based in the world’s second-largest economy and not be based on an index.

“An active approach to investing in China, coupled with the ability to invest in a wide range of Chinese stocks onshore and offshore, will give the fund’s portfolio managers the flexibility to help them navigate the dynamics of constraints. potential market and in a rapidly changing geopolitical landscape, ”Vanguard said in a press release.

The ETF boom is expected to continue to generate significant gains for the large financial firms that dominate the market. In this sense, shares of iShares owner BlackRock (BLK), ETF provider SPDR State Street (STT) and principal fund manager Invesco (IVZ) have each risen by around 30% so far this past. year.

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