Expansion of white-label ETP
ETP- as-a-service and how it works
ETP as a service
And how it works
The white-label ETP/ETFs market in Europe is expanding rapidly, fueled by demand for more accessible ETP/ETFs infrastructure and the rising popularity of active ETP/ETFs. This market allows asset managers to launch ETP/ETFs quickly and cost-effectively without building in-house capabilities.
Key Developments in the European Market:
- HANetf, once the only white-label provider in Europe, now faces competition from new entrants like Waystone ETFs, Goldman Sachs (ETF Accelerator), and Citigroup (Citi Velocity ETFs).
- Waystone acquired Northern Trust’s Irish ETF platform and launched new products.
- Goldman Sachs partnered with Baader Bank to launch AI-driven ETFs.
- Citigroup is launching Citi Velocity ETFs in Q1 2025, targeting active ETF issuers.
The Role of Active ETP/ETFs:
- Active ETP/ETFs are the main driver of white-label ETF growth in Europe.
- U.S. firms like ARK Invest have entered the European market, and others like Janus Henderson and Robeco are preparing to follow.
- Despite strong Q3 2024 inflows (€4.8 billion), active ETP/ETFs still only represent 2.2% of the European ETP/ETFs market—suggesting significant room for growth.
Why White-Label ETPs Are Gaining Popularity:
White-label ETF providers offer:
- Cost & Time Efficiency:
- Traditional ETF launch: 2 years, $2-3 million.
- White-label: ~3 months, ~$100K upfront, ~$250K annual.
- Turnkey Services:
- Compliance, fund structuring, portfolio management, marketing, and distribution.
- Expertise:
- Guidance on regulatory processes, fund strategy, and operations.
- Scalability:
- Economies of scale make it viable to manage multiple ETP/ETFs cost-effectively.
- Access to Distribution:
- Built-in advisor networks and sales teams help reach institutional investors.
- Cost & Time Efficiency:
Conclusion
White-label ETPs are transforming how asset managers—especially those without ETF infrastructure—can enter the market. With the rise of active ETP/ETFs, increasing competition among white-label providers, and new entrants like Citi, the European ETF space is set for significant expansion and innovation.