Welcome to Issue 14 of Exchange Traded Fridays for the week ending 22nd October 2021. In this week's news we saw more news on bitcoin/blockchain/crypto ETFs as well as an update we got to give on ausbiz for the September ETF market update. Elsewhere there was more on the Livewire Markets Income series, Equity Mates spoke about FTEC and we got to speak about ESG and retail trader education with Jess Leung of BetaShares/TheLeungWay. Jam-packed newsletter as usual!
What's in this newsletter?
Local ETF Articles
Global ETF Articles
ETF Videos
ETF Podcasts
Tweet of the week
Chart of the week
ETF Education
ETFtracker App Links
ETFtracker Forum
Listen or Watch
Articles - Local
AFR - Australian investors offered new crypto, blockchain ETF - We highlighted the FTEC listing from ETF Securities last week and this is the AFR note on that article that came out Thursday evening (so missed our cut slightly). Goes into some good detail on its launch as its the first passive Chi-X ETF as this smaller exchange is now set to challenge the ASX for more than just the active listings it was doing in the past (the ASX has both active and passive on its exchanges).
The Conversation - What is an ETF? And why is it driving Bitcoin back to record high prices? - Even The Conversation was talking ETFs given the bitcoin news where prices have gone back above the record reached in mid-April. It does go through why the ETF listing in the US tracking bitcoin futures has had a positive effect on the cryptocurrency price but also how there are cautions when it comes to speculative assets like this especially ones as volatile as bitcoin and we'll see how true that holds in ETF form.
Livewire - 2 provider-approved ETF portfolios for sustainable returns and income - Ally Selby and the Livewire Markets crew back at it again for their income series and this time she has 2 video interviews with ETF providers VanEck and State Street. Jamie Hannah and Jonathan Shead feature here giving their opinions and insights on ETFs and their distributions that investors may or may not be aware of. Check out the article and videos for more insights.
Motley Fool - HGEN performance - Details on the positive performance of the ETF Securities HGEN ETF since listing on the ASX.
ETF Securities - Weekly Report - w/e 15th October - Per ETF Securities: "New listing ETFS Hydrogen ETF (HGEN) was last week’s top performing ETF, gaining 8.9%. The clean energy sector posted large gains for the week with CLNE, ERTH and ACDC all amongst the top performers. Gold mining funds MNRS and GXD also performed strongly for the week. In a strong week for equities, bear equity funds SNAS, BBUS and BBOZ were amongst the leading decliners"
More details in the PDF.
Articles - Global
AFR - Bitcoin price eyes record high as ETF products near launch - more on the price of bitcoin as ETFs start to come to market in the US not just from ProShares which has been announced but also VanEck and Cathie Woo'ds ARK Invest.
CNBC SEC is set to allow Bitcoin futures ETFs to begin trading - It's finally here, after weeks, months, years of waiting, there is finally a bitcoin ETF. This tracks the futures contracts on bitcoin so won't be pegged to the price of bitcoin but it does mean direct exposure to bitcoin. With regulated assets like this it means an easier ability for institutions to get bitcoin exposure and is a positive sign for the local ETF markets.
Yahoo Finance - SEC Approves Bitcoin Futures ETF, Opening Crypto to Wider Investor Base - Another one ot add to the list with quotes from folks like Nate Geraci (of the ETFStore) talking about how this is “a step forward” for digital assets and bridging them with the more traditional financial sector. Does seem like Bitcoin Futures ETFs will be all that will trade though so all those other bitcoin applications will have to wait.
Funds Europe - Jacobi receives approval for "world’s first tier one" bitcoin ETF - In other news, a European investment firm, Jacobi Asset Management has been given approval to launch the first "tier one" bitcoin ETF. According to Jamie Khurshid their CEO "We are de-risking investments in crypto by removing the technology risk associated with the physical asset and the counterparty risk associated with traditional funds or tracker products that are unregulated leveraged debt instruments". More in the article.
Videos
The ETFtracker Show - Interviews with Experts - Episode 10 - 20th October 2021 - In this episode we got to speak with Jess Leung of BetaShares who by day is a portfolio manager and away from work is a financial social media influencer with a growing following. We go through her story and reason for getting her channel, TheLeungWay, started as well as talking about ESG ETFs and more on ETF innovation. 26mins
ausbiz - The ETF tidal wave crashing down in September - 19th October 2021 - In this episode we gave the ETFtracker update on the markets for September. It featured a negative performing month of returns contributing to a big slow-down in FUM growth. There were still $2.9 billion of net inflows coming into the market but poor returns held up further growth of the overall market. We also spoke about the week tht was in bitcoin and the watershed moment that occurred with the SEC bitcoin futures listing and the ASX/Chi-X blockchain ETFs CRYP and FTEC. 7mins
The Compound - 10 Stock Market Truths | What Are Your Thoughts? - In this episode its Josh, Mike and Ben all together for the first time since the last big crypto related announcement (CoinBase listing) so it's a special one. They go through the BITO (ProShares Bitcoin Futures ETF) listing and the popularity of its first trading session ($440 million volume in the first hour) and the options this gives not only institutions who want to trade this but also retail traders who might not be wanting to buy bitcoin via Binance/CoinBase and the other apps. Many just want to invest via a brokers. In the rest of hte show they go through updates on Apple, Zillow and more on risk in the market. Worth a look. 49mins
ausbiz - Smart beta: how it works and why you should care - 21st October 2021 - the team chats with Yvette Murphy of State Street SPDR to go through the ins and outs of smart beta strategies and per the show notes "Smart beta strategies have seen tremendous growth over the last 10 years. While institutional investors have been investing in this style for decades, global assets in smart beta ETFs have increased from $120b in 2011 to over $1.2t today". 5mins
ausbiz - ProShares US Bitcoin-Linked ETF propels BTC to record highs - 21st October 2021 - from the show notes "The ProShares Bitcoin Strategy ETF launched on the New York Stock Exchange (NYSE) this week under the ticker code BITO. Investment strategist Simeon Hyman joins ausbiz to discuss its first few days of trade. The price of Bitcoin (BTC) rallied to an all time high of $67,017" 5mins
ausbiz - Sceptics feast on humble pie as Bitcoin future ETF launches - 20th October 2021 - from the show notes "The markets have embraced the first Bitcoin ETF approved by the SEC and traded on by the NYSE. Matt Harry, Portfolio Manager at DigitalX is naturally pumped by this giant leap in crypto progress, especially as not that long ago the US SEC called cryptocurrencies as the 'wild west'" 6mins
ausbiz - Progress towards an Aussie BTC ETF is ... slow - 18th August 2021 - per show notes - he cryptocurrency industry got a boost Friday with the US Securities and Exchange Commission (SEC) likely to allow the first US bitcoin futures ETF to start trading, boosting BTC to over $US60k. Caroline Bowler, Chief Executive of BTC Markets welcomed this small but crucial step towards SEC oversight of the industry. She says there are no less than nine ETF applications, with this ProShares Bitcoin Strategy (futures) ETF the beginning of many seeking approval. While crypto spot and futures are volatile, Caroline is hopeful there is skill and management within the ETFs to mitigate the noise. They aso talk about the advantages of buying this as an ETF rather than directly buying bitcoin as there's the management overlay that comes with these recent moves. 7mins
ausbiz - Hydrogen and uranium and how to playem - 18th October 2021 - per the show notes - The recent energy crisis in Europe and fuel shortage in the UK have brought to light the shortcomings of over-reliance on non-renewable energy, says James Whelan from VFS Group. He says this has prompted a move towards clean, renewable energy generation, with the UK government set to announce plans to fund a new nuclear power plant before the 2024 election as part of its Net Zero strategy, according to media reports. So, James says this will continue to be the theme with nuclear getting the go-ahead, followed by more emphasis on hydrogen as the transition to renewables continues in the midst of an energy crisis. 9mins
Also, a couple of videos that came out on Friday 15th so missed the cut for last week's newsletter but these were important as they were significant blockchain related launches for local ETFs.
ausbiz - An alternative to investing directly in crypto with the latest ETF - per the show notes "Investor demand for ETFs in the crypto space is running hot, however regulation, or the lack of it has held back products coming to market. This week that changed. While a Bitcoin ETF still seems some way off, Australian investors can now get exposure to the blockchain thematic. ETF Securities has launched first ETF targeting blockchain technology. Kanish Chugh, from ETF Securities says their product focuses on crypto innovators as well as the broader fintech theme, which we are all more familiar with because of success stories like Afterpay." 3mins
ausbiz - Crypto mania hits the ETF market - 15th October 2021 - per the show notes "BetaShares is launching its very own crypto/stocks hybrid ETF. The Crypto Innovators ETF is expected to be launched soon on the ASX and will trade under the ticker code ‘CRYP’. The team is hoping to provide exposure to a portfolio of global companies at the forefront of the crypto economy. Justin Arzadon from Betashares says CRYP will offer investors exposure to this exciting space. For some names that will make it onto the ETF's balance sheet plus a conversation on why now, listen into this one." 6mins
Podcasts ETF Battles - Why Water Stocks Might Offer Bigger Growth vs Technology - AQWA vs FIW vs PHO! - New ETF podcast we started listening to - per the show notes: In this episode of ETF Battles you'll watch an audience requested triple-header between the Global X Clean Water ETF (AQWA), First Trust Water ETF (FIW) and Invesco Water Resources ETF (PHO). 20mins
Equity Mates - Who are the winners in the payments wars - ETF Securities - per the show notes "ETF Securities have recently released a new ETF tracking the global FinTech industry with significant exposure to blockchain technology, decentralised finance, digital payments and peer-to-peer lending - ETFS Fintech & Blockchain ETF (Exchange Code: FTEC). Alec and Bryce talk to Chris Titley, who's a stockbroker at Morgans Financial, and has a passion for this industry of emerging fintechs, digital banks and payments companies. Then they talk to Kanish Chugh, the Head of Distribution at ETF Securities Australia, about the rationale for creating an ETF that tracks this space, and the importance for retail investors to be exposed to this new disruptive technology." 39mins
Tweet of the week From the desk of Eric Balchunas of Bloomberg showing the BITO ETF first day trading with around $1 billion in total volume on the first data and $440 million in the first hour - check the thread here: https://twitter.com/EricBalchunas/status/1450557742956023821
Chart of the Week BITO debut and chart from Bloomberg here: https://www.bloomberg.com/news/articles/2021-10-19/proshares-bitcoin-futures-etf-starts-trading-in-watershed-moment
Further ETF Education ASX ETF Course - Introduction to buying to types of ETFs from the biggest exchange in Australia, the ASX. Check it out.
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ETFtracker Podcast and Videos Before we go further, if you'd prefer to consume all this content in more convenient forms of media, we've launched The ETFtracker Show as a podcast and video and Exchange Traded Fridays comes at the end of each week. Additionally, we've launched a series of interviews with various ETF market participants.
You can also access the podcast directly on our website here: https://www.etftracker.com.au/podcasts
ausbiz
If you're interested in financial news you should check out ausbiz (sign up HERE) which has so much FREE financial and business content that comes out every day and has made it easier to follow your favourite topics and market experts. We get to feature on there and you can check out our page (and give us a follow) here: https://www.ausbiz.com.au/expert/mark-monfort?expertID=179
