Odds & Ends: Larry Fink Pushes for Spot Bitcoin ETF

After having the current round of spot bitcoin exchange-traded funds deemed “inadequate” by the Securities and Exchange Commission, BlackRock’s CEO Larry Fink went on Fox Business to tout the benefits of a spot bitcoin ETF, and push the SEC to approve it. He said such funds would be “a way to democratize crypto and make it cheaper.”  

By cheaper, he doesn’t mean bitcoin itself will get cheaper, but such funds could dramatically lower the trading costs of the digital asset. Crypto exchange Coinbase charges upward of 3% for crypto trades, whereas the costs to buy and sell most ETFs are multiple orders of magnitude lower.  

Also this week, mutual find titan Fidelity Investments announced another round of mutual-fund-to ETF conversions. Last month it converted half a dozen thematic “disruption” fund to ETFs. These new conversions won’t take place until Nov. 17, but it shows the continuing trend of firms embracing the transparency and tax efficiency of the ETF model. 

The funds to be converted are: 

• Fidelity International Enhanced Index Fund will become the Fidelity Enhanced International ETF 
• Fidelity Large Cap Core Enhanced Index Fund will become the Fidelity Enhanced Large Cap Core ETF 
• Fidelity Large Cap Growth Enhanced Index Fund will become the Fidelity Enhanced Large Cap Growth ETF 
• Fidelity Large Cap Value Enhanced Index Fund will become the Fidelity Enhanced Large Cap Value ETF 
• Fidelity Mid Cap Enhanced Index Fund will become the Fidelity Enhanced Mid Cap ETF 
• Fidelity Small Cap Enhanced Index Fund will become the Fidelity Enhanced Small Cap ETF 

The funds are all actively managed stock funds that will add to the current swath of active funds being added to the ETF market. 

Launches 

Monday: 

The next monthly series of Innovator buffer ETFs launched on Monday. 

• Innovator Premium Income 10 Barrier ETF – July (JULD) 
• Innovator Premium Income 20 Barrier ETF – July (JULH) 
• Innovator Premium Income 30 Barrier ETF – July (JULJ) 
• Innovator Premium Income 40 Barrier ETF – July (JULQ) 

Friday: 

The Global Music Industry ETF (MUSQ), a music industry stock ETF. 

Closures 

Tuesday: 

Wednesday: Amplify Digital & Online Trading ETF (BIDS), a thematic stock ETF. 

Friday: 

A series of sustainable investing stock funds from Emerge Capital Management closed: 

• Emerge EMPWR Sustainable Dividend Equity ETF (EMCA) 
• Emerge EMPWR Sustainable Emerging Markets Equity ETF (EMCH) 
• Emerge EMPWR Sustainable Select Growth Equity ETF (EMGC) 
• Emerge EMPWR Unified Sustainable Equity ETF (EMPW) 
• Emerge EMPWR Sustainable Global Core Equity ETF (EMZA) 

ETF Changes 

Monday: 

Two funds changed their expense ratios: 

The iShares MSCI EAFE Min Vol Factor ETF (EFAV) volatility factor ETF changed its expense ratio to 0.20% from 0.32%.  

The Goose Hollow Tactical Allocation ETF (GHTA) actively managed stock and bond ETF changed its expense ratio to 1.14% from 1.12%. 

Contact Gabe Alpert at [email protected]