ETP white-label solutions

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:

1. 1. 1. Cost & Time Efficiency:
         • Traditional ETF launch: 2 years, $2-3 million.
         • White-label: ~3 months, ~$100K upfront, ~$250K annual.
      2. Turnkey Services:
         • Compliance, fund structuring, portfolio management, marketing, and distribution.
      3. Expertise:
         • Guidance on regulatory processes, fund strategy, and operations.
      4. Scalability:
         • Economies of scale make it viable to manage multiple ETP/ETFs cost-effectively.
      5. Access to Distribution:
         • Built-in advisor networks and sales teams help reach institutional investors.

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.

Client acting as Product Sponsor/Asset Manager is free to make a selection of a custodian institution which will then be engaged by the issuance vehicle and onboarded with the custodian.

Within the engagement of the custodian, the Client will directly discuss the terms of such engagement, preferred reporting tools and obtain viewing access to the custodian wallets/accounts controlled by the issuance vehicle and pledged in favor of the ETP noteholders.

The clients may choose to work with “ a default” custodian already onboarded with the issuance vehicle or open a new custodian engagement exclusive for their products only

Private Placement before Listing for “smooth” launch

One of the most critical moments in the launch of ETP Product on the market is the “seed” funding.

A “weak” seed funding may hinder larger institutions investing because of risk policies prohibiting becoming a majority investor (usually, around 10% threshold ).

ESG capabilities

Possible extensive ESG reporting and scoring capability for ESG compliant Product issuance via specialised providers.