ETF issuers like Exchange Traded Concepts help go through the regulatory approval process, provide a board of directors and get an ETF listed on an exchange for a relatively small fee in startup costs.
Some small hedge fund managers see ETFs as an ideal way to increase assets under management. Smaller funds typically find it harder to bring in large pension funds and institutions that target large hedge funds with billions in assets under management and long track records. As a result, more are beginning to look at ETFs as a way to market their investment strategies, targeting financial advisors and retail investors instead.
“So having someone to guide you through the filing process, the 19b-4s, and really to respond to everything correctly is a great sort of consultative services to have,” Cronan added.
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