As we enter the summer months of 2014, the ETF industry has begun to taper off its new products and filings. This is typical, as the summer months come with low volume in the market and less interest than we see in other seasons. Still, issuers continue to press the ETF envelope with new funds and filings to expand the reach of the industry. This week saw one release from Invesco Powershares and news concerning the proposed bitcoin ETF from the famed Winklevoss twins [for more ETF news and analysis subscribe to our free ETF Daily Roundup].
A New Alternative ETF
Powershares announced that it will soon launch the PowerShares Multi-Strategy Alternative Portfolio (LALT). The ETF is expected to debut on May 29th on the Nasdaq. LALT will be an actively managed product that looks to minimize volatility in broad alternative asset classes while still providing investors with a strong return utilizing a long-short strategy. Noting that the Fed’s historic QE program is currently winding down and there is the potential for volatility to return to equities and bonds, Powershares believes this strategy will be key to helping investors navigate any upcoming volatility. The fund will be benchmarked against the Morgan Stanley Multi-Strategy Alternative Index.
One Small Step for the Bitcoin ETF
Bitcoin itself has been a regulation nightmare, as the cryptocurrency has piqued the interest of a number of institutions that argue about how and to what degree it should be regulated. So it should be no surprise that the long-proposed bitcoin ETF from the Winklevoss twins has taken some time to make progress. Late last week, the filing for the fund was updated and noted that the product will be listed on the Nasdaq. While it is not a monumental change, it does show that the ETF is making progress toward becoming a reality.
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Disclosure: No positions at time of writing.