Two weeks ago BlackRock filed for a spot bitcoin ETF. Last week, WisdomTree also filed for a spot bitcoin ETF. That renewed interest is helping push bitcoin over $30,000, its highest level in a year. But we know the SEC under Gary Gensler is hostile to the concept of a spot bitcoin ETF, so why bother filing? Join us Monday on ETF Edge at 1:10 PM ET when our guest will be Jeremy Schwartz, WisdomTree Global CIO. Why does WisdomTree believe they might change Gensler's thinking about this? What tweaks to the application process have been made that might differentiate these recent filings from other applications for a spot bitcoin ETF, all of which have been rejected? Also joining us is Nate Geraci, President of The ETF Store. We will talk bitcoin, gold and gold ETFs, and recent broader inflows and outflows. ETFEdge.cnbc.com.
Also riding the crypto tailwind… BlackRock's new push for a bitcoin ETF appears to be giving a boost to potential rival Grayscale. The Grayscale Bitcoin Trust (GBTC), which has long traded at a steep discount to its net asset value, surged another 20% this week on top of an already big gain of nearly 13% last Friday after BlackRock made headlines with its proposal. Grayscale has been locked on a legal battle with the SEC about converting its GBTC into an ETF – with a decision in that case expected later this year.
Equity ETFs finally winning out over bond funds. Despite all the love for bond funds this year, equity ETFs have finally overtaken fixed income ETFs in total inflows this year. After a slow start to 2023, nearly $102 billion has poured into equity ETFs – compared to $39 billion for fixed income ETFs, which had been winning out until this month. This comes amid hopes the Fed is nearing the end of its tightening regime – fueled by growing sense of "FOMO" and hype around AI stocks.
PIMCO adds to big bond ETF lineup. The world's largest active ETF manager just expanded its roster of active fixed income ETFs – launching the PIMCO Multisector Bond Active ETF (PYLD) and the PIMCO Ultra-Short Government Active ETF (BILZ). The PYLD aims to offer diversified exposure to credit markets like investment-grade and high-yield bonds, as well as other assets. The BILZ ETF, meanwhile, primarily invests in short-term U.S. government-related debt. VettaFi Vice Chairman Tom Lydon says, "There is a lot of money in motion on the fixed income side and all of the ETF issuers are trying to grab what they can, as investors are going longer-duration."
Betting on fresh breadth: Many believe rally will broaden out. Wall Street has grown more confident in the market's strong start to the summer and is now betting the next leg up will include a wider group of winning stocks. The Invesco S&P 500 Equal Weight ETF (RSP) has attracted more than $1.4 billion in inflows over the past week, making it one of the five most popular ETFs in that period. Despite big tech's dominance this year, there are some signs the rally has broadened out this month.
New ETF offers exposure to music and media. A new thematic ETF is trying to give investors a way to access the music and entertainment industry. The Clouty Music, Media and Entertainment ETF (TUNE) launched Thursday with 50 stocks in its portfolio. TUNE has an expense ratio of 0.65% and includes big names tied to the music industry like Spotify, Warner Music Group and South Korean company Hybe – along with media giants like Netflix, Snap and Fox.
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