Quick Takes and Key Points from Trackinsight’s 2025 Global ETF Survey

A Dog-Eat-Dog Market

The ETF industry was more cutthroat than ever in 2024. A record 1,712 new ETFs launched, but nearly 500 shut down, a sign that simply showing up isn’t enough anymore. Issuers are being forced to innovate, specialize, and take real bets to survive.

In the U.S., those bets paid off, if they were the right kind. At first glance, the trends looked all over the map: covered calls, buffered notes, Bitcoin, single-stock leveraged trades. But the throughline was clear: risk management with selective risk-taking.

Buffered and covered call ETFs swelled to $170 billion in AUM, pulling in $60 billion from investors seeking yield and downside protection. On the other end of the spectrum, spot Bitcoin and Ether ETFs finally arrived and helped push crypto ETF assets above $100 billion. Meanwhile, tactical traders piled into leveraged single-stock ETFs tied to Tesla, Nvidia, and others.

Active ETFs also had their breakout moment, crossing $1 trillion in AUM, driving 70% of all new launches, and accounting for 25% of total flows.

It was a year where investors hedged carefully but still swung big when the payoff seemed worth it, and ETF issuers made sure they had the tools to do both.

Active Management  Strikes Back

As of February 28, 2025, there were 3,307 active ETFs listed globally, more than double in 2019. They now make up 27% of all ETFs worldwide, a steep climb from just 13% six years ago. And they’re not just multiplying—they’re pulling in money: by early 2025, active ETFs accounted for 30% of all ETF flows.

And this could just be the beginning. The SEC is currently reviewing a pivotal proposal that would allow mutual funds and ETFs to operate as share classes of the same vehicle, a structure long used by Vanguard, but never available to the rest of the industry.

If it passes, every strategy you’ve seen in a 401(k) menu—target date funds, multi-asset blends, classic active mutual funds—could get “ETF’d” overnight. The mutual fund-to-ETF pipeline would go from a trickle to a firehose.

Crypto ETFs Get More Complex and Riskier

Investor appetite for crypto hasn’t let up. By February 2025, total U.S. crypto ETF assets hit $108 billion, with $85 billion in net inflows across 55 products—including 30 Bitcoin ETFs ($100B AUM), 19 Ether ETFs ($9B), and a growing handful of blended strategies.

But it’s no longer just about long spot exposure. Once the SEC approved options trading on spot Bitcoin ETFs, and later on spot Ether, issuers went into overdrive. We’ve since seen the launch of buffered, covered-call, leveraged, and inverse crypto ETFs, giving tactical traders and risk-hungry allocators a full menu of derivatives-based plays.

What’s next? Filings for Solana, Litecoin, Dogecoin, and XRP ETFs are reportedly under SEC review, suggesting the envelope is about to be pushed even further.

ETF Industry Predictions to Bookmark

As part of the survey, 16 industry experts (including yours truly—see page 49) were asked to share their five biggest ETF predictions for 2025 and beyond.

While each individual outlook was different, a few common themes emerged again and again. And when multiple ETF professionals independently arrive at the same forecasts, it’s worth paying attention. Here’s what came up repeatedly:

• Active ETFs Are Gaining Serious Traction
  Many expect active ETF AUM to double in the coming years. Structural catalysts—like the SEC’s potential approval of ETF-mutual fund share classes—could turn active into the industry default. Several experts predicted more active ETFs will outperform traditional benchmarks as the Magnificent 7 cools and small/mid-cap stock selection starts to matter again.
• Expect a Reckoning for Leveraged and Single-Stock ETFs
  A common prediction was that one or more single-stock ETFs—especially the more volatile leveraged ones—will blow up spectacularly. Several noted we’re likely to see a surge in fund closures, especially in niche or gimmicky segments.
• Asia and Japan Are Major Growth Frontiers
  Multiple experts highlighted reforms in Japan and Hong Kong, from NISA to ETF Connect, as major drivers for ETF expansion in Asia. Combined with rising institutional demand, expect more issuers targeting this region.
• Liquidity and Transparency Are Critical
  With ETF trading now fully mainstream, several panelists forecast that liquidity metrics, real-time execution quality, and intraday transparency will become central to fund selection.

Please note that this article reflects the author's personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.