On this episode of ETF Prime, host Nate Geraci speaks with a trio of individuals discussing several different topics. His guests include VettaFi’s Rosenbluth who discusses bitcoin ETFs, F/m Investments mutual fund share class filing, and more. Geraci also speaks with Charles Schwab’s Generazio about his thoughts on best ETF trading practices. To close the podcast Geraci speaks with Armada ETFs’ Bak who discusses his firm’s PRVT ETF.
Geraci opens the podcast speaking with Todd Rosenbluth of VettaFi discussing Grayscale’s petition to convert GBTC to a Bitcoin ETF. Geraci mentions how this case itself has gone on for quite some time. He also highlights that many individuals are still unsure of when the ruling will come in. Geraci then asks Rosenbluth if anything has changed in his thinking around the approval of spot Bitcoin ETFs given the SEC’s stance on Ethereum future’s ETFs.
“I still do not believe that we will have a spot bitcoin ETF approved by the SEC in 2023,” Rosenbluth said.
Nonetheless, Rosenbluth highlights that we have seen a lot of shifts in the industry lately. He mentions that there are now more than 18 filings for futures-based ETFs tied to Ethereum. When discussing futures-based Bitcoin ETFs on the market Rosenbluth reveals that only one has been successful in the collection of assets which is the ProShares Bitcoin Strategy ETF. He mentions how this fund recently had just under $1 billion in assets. Rosenbluth ultimately believes regardless of the Grayscale ruling he doesn’t expect to see an immediate approval of these types of ETFs from the SEC.
Note: This section of the podcast was recorded before the United States Court of Appeals announced in favor of Grayscale’s petition to convert its GBTC to a Bitcoin ETF. Read more HERE.
F/M Investments Filing
The conversation shifts gears when Geraci mentions F/M Investments’ recent filing for a mutual fund share class ETF. Geraci highlights the fact that F/M Investments has previously had some success when launching new ETFs. With this filing, F/M Investments wants to offer a mutual fund share class of their single treasury bond ETF. Geraci then asks Rosenbluth what his thoughts were on the proposal of this product.
“I thought ‘Wow’ what an innovative next step for F/M Investments. And as you touched on, they are an innovator in the ETF space,” Rosenbluth said.
Rosenbluth then calls attention to the significant amount of assets that F/M Investments has accumulated specifically in the US Treasury 3 Month Bill ETF (TBIL ). This fund has gathered $1.6 billion in assets which he believes is an impressive feat for a fund that just recently passed its first anniversary. When discussing the firm’s recent filing Rosenbluth mentions despite this innovative thought he is surprised that this fund is looking to get into the mutual fund market given where past growth has been. However, he says that he can see the interest in owning a version of TBIL in a 401K plan rather than a cash allocation.
To close the segment the pair also discuss Cramer ETFs and physical gold ETFs. In addition, Rosenbluth highlights some of the topics and firms participating in VettaFi’s artificial symposium that is set to take place on August 30 at 11 a.m. ET
ETF Trading Best Practices
Geraci then speaks with Tom Generazio who is the senior trader on the institutional block desk at Charles Schwab. Geraci mentions that Generazio has over thirty years of trading experience overall. Generazio has been working with ETFs specifically for nearly ten years. Geraci also highlights the fact that he believes Generazio is a true professional in the space who knows trading and capital markets inside and out.
Generazio starts the conversation by diving deep into what his day-to-day looks like. He then gives his thoughts on several of his own ETF trading best practices. The senior trader also highlights how he helps support advisors in several different facets.
“I will tell you from my standpoint that no trade is too small for me to step in, and add value,” said Generazio. Generazio continues the conversation by diving deeper into the ETF trading best practices he uses when working with advisors.
To close the podcast Gerci speaks with Phil Bak who is the CEO of Armada ETFs. In June Bak’s firm released the Private Real Estate Strategy via Liquid REITs ETF (PRVT ), and the firm also offers the Residential REIT ETF (HAUS ). Geraci then inquires about what problem Bak and his firm are trying to solve with the PRVT ETF. Bak first spotlights his admiration of other firms that have similar strategies to PRVT. He mentions that they are great allocators of capital. Outside of just capital allocation, there are several other traits that these firms have Bak greatly appreciates as well. He then dives into what he and his firm are trying to solve with PRVT.
“What we want to offer is that same strategy to investors, those same allocations, those same geographies, the same fundamental allocation, but without paying up at a 40% premium,” said Bak. To close the segment, the pair dive deep into several other key topics and intricacies of the PRVT ETF.
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