Trillions The 2025 ETF Mailbag
Jul 17, 2025
Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence, joins the discussion to provide insights into the world of ETFs. He and the hosts tackle the upcoming ETF share-class approvals and their tax benefits. The conversation also delves into the promise and limitations of asset tokenization, comparing traditional ETFs with tokenized stocks. They'll cover how profitability differs in ETFs, the potential fate of crypto ETFs, and why Vanguard's S&P 500 ETF remains a stronghold. The trio predicts the future evolution of ETFs over the next decade.
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ETFs Are Low-Margin, Scale-Driven
- ETF issuers earn relatively low revenue per asset compared with mutual funds and hedge funds, making ETFs a tough business.
- Winners exist (e.g., BlackRock, JP Morgan) but many ETFs are low-margin and rely on scale or cross-subsidies.
Crypto ETFs Will See Closures And Winners
- Some crypto spot ETFs are already profitable but smaller ones may not reach break-even at current fee levels.
- Expect closures of underperforming crypto ETFs while larger issuers can absorb losses and shut underperformers when convenient.
IBIT's Rapid Profitability
- BlackRock's IBIT quickly became one of its most profitable ETFs due to high demand and a fee that undercuts alternatives.
- Eric argues the fee is fair given the big price reduction from prior crypto investment options.