Since mid-August, three existing ETF issuers and a startup have filed to launch 402 funds based on the performance of individual ice hockey, baseball and basketball teams. The initiative is backed by the owners of the Boston Red Sox, Chicago Cubs and Los Angeles Dodgers, who invested in the creator of the indices the ETFs would track. Sports funds are the latest curveball from a US ETF industry that grew from 2,241 funds at the end of 2020 to 5,488 as of last month, according to ETFGI.
Many proposals are plainly ridiculous, including one ETF claiming to benefit from "reverse-engineered alien technology." However, given the current US financial-regulatory regime, approval is possible. Since the Supreme Court struck down the federal law preventing states from authorising sports betting in 2018, 39 states and DC have legalised it. Americans wagered a record $167bn on sport in 2025, a 40% rise in two years.
Last year, 22% of US adults told Pew they had bet on sports in the previous year. Offering sports-related ETFs may hedge traditional asset managers, as over half of Gen Zers have directed investment funds to sports betting at least once, per Betterment, with 26% viewing it as part of their long-term strategy. The ETF providers are Roundhill Investments, Volatility Shares, REX Financial via Alpha Sports, and debutant League Sports.
They plan to cover all 32 NHL, 30 MLB, and 30 NBA teams, including 2x leveraged versions, based on CME futures on Future Sports Performance Indices.
Fonte: Financial Times Markets · Resumido por HeadlinesBriefing