Matt Bucklin, founder of ExchangiFi, joined Nate Geraci on this week’s ETF Prime to discuss his platform connecting advisors dealing with concentration risk to ETF issuers offering 351 exchanges. The 80-year-old tax code provision allows investors to swap individual securities for ETF shares without triggering a taxable event.
The platform is free for advisors to register and use, with revenue coming from listing and marketing fees charged to ETF issuers, according to Bucklin. The software optimizes portfolios against diversification requirements and compliance checks. Bucklin expects 50 to 100 opportunities on the platform by year end, validating predictions that 351 exchanges are going mainstream. About one-third of the 1,000 ETFs launched recently could utilize this structure.
Legal gray areas remain around strategy alignment and rebalancing timelines, Bucklin said. Some lawyers argue contributed portfolios must match the ETF strategy 100% while others say 0% is required because the fund will eventually rebalance. Opinions differ on how quickly issuers must rebalance contributed securities, ranging from day one to over a year, he added.
Themes ETFs Touts Pure Play Approach
Paul Marino, chief revenue officer at Themes ETFs, discussed the firm’s rapid growth since launching two years ago. Themes currently offers 17 thematic ETFs with $300 million in assets and 73 leveraged share ETFs with nearly $1 billion in assets.
The firm emphasizes pure play exposure without including unrelated stocks to boost returns. Marino highlighted how the Themes Silver Miners ETF (AGMI ) has gained nearly 240% over the trailing year.
He attributed the performance to silver’s dual role as an industrial metal and historically undervalued asset. The firm’s only active strategy is the Themes Global Systemically Important Banks ETF (GSIB ), which holds the 29 largest financial institutions designated by the Financial Stability Board.
On leveraged shares, Marino pushed back against gambling narratives, arguing the products democratize access to leverage previously reserved for professionals. The two times long and short strategies reset daily and require strict trading processes.
“Professional traders don’t waste a lot of time or a lot of days losing,” Marino said. “They know when to cut their losses and they know where to take their profit.”
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