HANetf, which provides a platform for asset managers and other partners to launch ‘white label’ exchange-traded funds, has exceeded US$2bn of assets under management (AUM) after seeing rapid growth of its ETFs in the first few weeks of 2021.
As of 19 February, AUM reached £2.22bn for the 12 funds issued by HANetf, an increase of over 85% in eight weeks since the beginning of the year and only nine weeks since the US$1bn mark was reached.
The company has launched seven new ETFs and exchange-traded products (ETP) over the past year, with a host of thematic ETFs, including the world’s first carbon avoidance solutions ETF, the world’s first central counterparty-cleared exchange traded Bitcoin ETP, the world’s first Shariah-compliant global equity active ETF, Europe’s first medical cannabis ETF, and a physical gold ETC with The Royal Mint.
It is the BTCE Bitcoin ETP that has been a large part of the total rise in AUM, said HANetf co-CEO Hector McNeil, with “phenomenal demand” for the product pushing its AUM past US$1bn on its own.
“Institutional investors are now taking Bitcoin seriously and seeing it as a safe haven and rushing to products like BTCE that offer access to Bitcoin with all the regulatory protections of an exchange trade product,” McNeil said.
“Global investors are flocking to Bitcoin ETFs like BTCE as other Bitcoin access instruments such as US trusts and futures can often trade at significant premiums.”
He said there have also been increased flows across the board into the company's thematic ETFs, such as the HAN-GINS Tech Megatrend Equal Weight UCITS ETF ITEK, which recently hit US$100m AUM, and the recently launched iClima Global Decarbonsiations Enablers ETF and The Medical Cannabis and Wellness UCITS ETF launched in January last year, which became the first European cannabis ETF to break through the $50m AUM figure.
“What is most exciting is that we have 10-plus ETFs that we expect to launch in the first half of the year. Some are global and European firsts.
“We set out to be the ‘valued-added ETF issuer’ offering differentiated products with a view to offering market-leading asset managers, brands with great intellectual property to gain time and cost-efficient entry to the UCITS ETF market.
“This landmark proves the tyres have been well and truly kicked on the model. Our end vision of being the World’s first multi manager ETF platform is well underway,” he said.
McNeil set up HANetf with Nik Bienkowski in 2018 to break down barriers to entry to the European ETF market by providing a product and distribution platform with the ability to issue a new UCITS ETF within 10 weeks, including product development, operational, regulatory, distribution and marketing solutions