Just in: BlackRock just launched a "buffer fund", a stock ETF with a 100% downside hedge.
The iShares Large Cap Max Buffer Jun ETF started trading on Monday under the ticker symbol $MAXJ What’s a buffer fund? These funds offer hedged exposure to stocks by limiting losses while also capping gains, and they’re not exactly a new concept. Since their inception, they’ve attracted industry giants like BlackRock, and they’ve drawn about $5 billion in inflows so far this year. But even before they came around, investment banks were offering their clients “structured notes” – a hybrid product that combines bits and pieces of different financial instruments into one to create customized risk-reward profiles. While there are many different types of structured notes out there, “buffer participation notes” are among the most popular. The notes and buffer funds work in the exact same way – they’re just packaged as different investment vehicles. Having said that, buffer funds are a lot more accessible for retail investors. Buffer participation notes, like most structured notes, are typically offered by investment banks only to sophisticated, high-net-worth clients. Buffer ETFs, by contrast, can be bought and sold just like any ordinary stock. Source: Finimize
After liquidity tailwinds in Q4 2023, the etfs launches and bitcoin halving in Q1 / early Q2, liquidity headwinds played catch-up in late Q2, pushing BTC lower
Source: Delphi Digital, Bloomberg
Bitcoin is back to the lower end of this range
$BTC plunges >5% as funds see most outflows over 2 weeks since ETF approval. Bitcoin investment products saw ~$600mln in outflows for a 2nd consecutive week. Source: J-C Parets, HolgerZ
The great supply / demand imbalance ->
ETFs now hold more than 1 millon bitcoin and there is less than 20 million left...
$NVDL (2x Nvidia ETF) went from 0 to 1,452% return in 350 days since launching..
The ETF now has $2.7b in assets and $1b/day volume. Source: Eric Balchunas, Bloomberg
New weight-loss drug ETF
“Roundhill Investments' GLP-1 & Weight Loss ETF (OZEM), which began trading last week, pairs leaders Eli Lilly and Novo Nordisk with players developing new treatments for weight loss and diabetes. CEO Dave Mazza said his firm is capitalizing on explosive growth potential in the industry…Eli Lilly and Novo Nordisk each hold a roughly 20% weighting in the ETF. The three next largest positions are Zealand Pharma, Amgen and Chugai Pharmaceutical, each of which have a weighting under 5%”. Source: CNBC, Bloomberg
Good chart from Deutsche Bank / Bianco Research on the ownership of ETFs
Source: Deutshe Bank / Bianco Research
SEC approves 8 Ethereum ETFs including BlackRock and Fidelity.
But ETF issuers must have their S-1 registration statements go effective before trading can begin. It's unclear how long this process will take but some analysts are speculating that it could take weeks. In a stunning reversal, the U.S. Securities and Exchange Commission (SEC) announced on Thursday that it has approved eight applications for spot Ethereum ETFs, effectively green-lighting Ethereum trading on Wall Street. The following funds were approved in the filing: the converted Grayscale Ethereum Trust, the Bitwise Ethereum ETF, iShares Ethereum Trust, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF. When will the spot Ethereum ETFs begin trading? It won't be tomorrow. Bloomberg ETF expert James Seyffart suggested in a tweet that it could be a "couple weeks" before the fund managers' S-1 documents are approved to enable trading. Source: Decrypt
