AXS To Acquire Tuttle ETFs
The two issuers aim to create a powerhouse in alternative strategies.
AXS Investments has agreed to acquire Tuttle Capital Management's suite of ETFs in an effort to build a unified player in the alternative strategies ETF space.
Tuttle Capital Management CEO Matthew Tuttle confirmed the deal to ETF.com in an interview Monday morning. He will join AXS in charge of capital markets and trading.
The suite of six Tuttle ETFs with nearly $417 million in assets filed for a reorganization under AXS’ trust last week. The timeline for the reorganization to close is not immediately clear and requires regulatory approval.
The two firms began discussions last summer over partnering on new issues, but later agreed to the deal in December as part of a larger distribution strategy with Tuttle bringing its retail investor reach and AXS bringing its connections to advisors.
“The Tuttle family of funds really fits in very well with our approach to non-traditional alternative exposures for individuals,” said AXS CEO Greg Bassuk in an interview.
The two firms are comparatively small players in the ETF market based on assets, but have carved out niches in the realm of highly targeted strategies within the ETF wrapper.
Tuttle’s largest fund by far is the $334 million Tuttle Capital Short Innovation ETF (SARK), the inverse bet against Cathie Wood’s flagship ARK Innovation ETF (ARKK).
AXS debuted on the ETF market with its AXS Astoria Inflation Sensitive ETF (PPI) at the end of 2021, which gathered more than $66 million as American inflation measures remain at decades-high levels. The firm is among a handful of issuers racing to launch leveraged and inverse single-stock ETFs, specifically Tesla, Nvidia, Boeing, Pfizer and other major companies.
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Editor's note: this story previously referred to the deal as a merger. AXS is acquiring Tuttle Capital Management's funds.
