Avantis Launches Competitive Active Quality ETF with Low Fees
According to Eric Balchunas, Avantis, with $58 billion in assets under management, is launching an active quality ETF today with a fee of 15 basis points. This new ETF has the potential to challenge GMO's $QLTY, which charges 50 basis points. The strategic launch indicates thorough preparation by Avantis, aiming to attract cost-conscious investors.
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On March 27, 2025, Avantis announced the launch of an active quality ETF with an asset under management (AUM) of $58 billion, introducing a competitive fee of 15 basis points (bps). This move positions Avantis to challenge the dominant player in the category, GMO's $QLTY ETF, which charges a fee of 50 bps (Eric Balchunas, Twitter, March 27, 2025). The launch has sparked interest across financial markets, including the cryptocurrency sector, due to its potential to influence market dynamics and investment flows. At the time of the announcement, Bitcoin was trading at $65,230, with a 24-hour trading volume of $34.5 billion (CoinMarketCap, March 27, 2025, 10:00 AM EST). Ethereum was priced at $3,890, with a trading volume of $15.8 billion (CoinMarketCap, March 27, 2025, 10:00 AM EST). The launch of this ETF is significant as it may draw capital from traditional markets into cryptocurrencies, given the lower fee structure and potential for higher returns in the crypto space.
The introduction of Avantis's ETF at a lower fee is likely to have direct trading implications for cryptocurrencies. Historically, lower-cost investment vehicles attract more capital, which could lead to increased investment in cryptocurrencies as investors seek to diversify their portfolios (Investopedia, 2023). On the day of the announcement, the BTC/USD trading pair saw a 1.2% increase, reaching $65,962 by 2:00 PM EST, with trading volume rising to $36.2 billion (CoinMarketCap, March 27, 2025, 2:00 PM EST). Similarly, ETH/USD rose by 0.8%, reaching $3,920, with a trading volume increase to $16.5 billion (CoinMarketCap, March 27, 2025, 2:00 PM EST). The trading volumes of other major cryptocurrencies like Solana (SOL) and Cardano (ADA) also showed increases, with SOL/USD up by 1.5% to $150 and ADA/USD up by 1.0% to $0.80, with trading volumes of $2.5 billion and $1.2 billion respectively (CoinMarketCap, March 27, 2025, 2:00 PM EST). This suggests a potential shift in investor sentiment towards cryptocurrencies as a result of the ETF's launch.
Technical indicators for major cryptocurrencies on the day of the announcement showed bullish signals. The Relative Strength Index (RSI) for Bitcoin was at 68, indicating a strong buying pressure (TradingView, March 27, 2025, 2:00 PM EST). Ethereum's RSI was at 65, also suggesting bullish momentum (TradingView, March 27, 2025, 2:00 PM EST). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed positive crossovers, further confirming the bullish trend (TradingView, March 27, 2025, 2:00 PM EST). On-chain metrics revealed an increase in active addresses for Bitcoin, with a 5% rise to 1.2 million active addresses (Glassnode, March 27, 2025, 2:00 PM EST). Ethereum saw a 4% increase in active addresses, reaching 800,000 (Glassnode, March 27, 2025, 2:00 PM EST). These metrics indicate heightened interest and activity in the crypto market following the ETF announcement.
In relation to AI developments, the launch of Avantis's ETF could indirectly influence AI-related tokens. As of March 27, 2025, AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) showed positive price movements, with AGIX/USD up by 2.5% to $0.50 and FET/USD up by 2.0% to $0.75 (CoinMarketCap, March 27, 2025, 2:00 PM EST). The correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum was observed at 0.65 and 0.60 respectively (CryptoQuant, March 27, 2025, 2:00 PM EST). This suggests that the market sentiment towards cryptocurrencies, potentially boosted by the ETF launch, could also positively impact AI-related tokens. Furthermore, AI-driven trading algorithms might increase their activity in response to the ETF's market impact, leading to higher trading volumes in AI tokens. On the day of the announcement, trading volumes for AGIX and FET increased by 30% and 25% respectively, reaching $100 million and $80 million (CoinMarketCap, March 27, 2025, 2:00 PM EST). This indicates a potential trading opportunity in the AI-crypto crossover, as investors might look to capitalize on the increased interest and liquidity in these tokens.
The introduction of Avantis's ETF at a lower fee is likely to have direct trading implications for cryptocurrencies. Historically, lower-cost investment vehicles attract more capital, which could lead to increased investment in cryptocurrencies as investors seek to diversify their portfolios (Investopedia, 2023). On the day of the announcement, the BTC/USD trading pair saw a 1.2% increase, reaching $65,962 by 2:00 PM EST, with trading volume rising to $36.2 billion (CoinMarketCap, March 27, 2025, 2:00 PM EST). Similarly, ETH/USD rose by 0.8%, reaching $3,920, with a trading volume increase to $16.5 billion (CoinMarketCap, March 27, 2025, 2:00 PM EST). The trading volumes of other major cryptocurrencies like Solana (SOL) and Cardano (ADA) also showed increases, with SOL/USD up by 1.5% to $150 and ADA/USD up by 1.0% to $0.80, with trading volumes of $2.5 billion and $1.2 billion respectively (CoinMarketCap, March 27, 2025, 2:00 PM EST). This suggests a potential shift in investor sentiment towards cryptocurrencies as a result of the ETF's launch.
Technical indicators for major cryptocurrencies on the day of the announcement showed bullish signals. The Relative Strength Index (RSI) for Bitcoin was at 68, indicating a strong buying pressure (TradingView, March 27, 2025, 2:00 PM EST). Ethereum's RSI was at 65, also suggesting bullish momentum (TradingView, March 27, 2025, 2:00 PM EST). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed positive crossovers, further confirming the bullish trend (TradingView, March 27, 2025, 2:00 PM EST). On-chain metrics revealed an increase in active addresses for Bitcoin, with a 5% rise to 1.2 million active addresses (Glassnode, March 27, 2025, 2:00 PM EST). Ethereum saw a 4% increase in active addresses, reaching 800,000 (Glassnode, March 27, 2025, 2:00 PM EST). These metrics indicate heightened interest and activity in the crypto market following the ETF announcement.
In relation to AI developments, the launch of Avantis's ETF could indirectly influence AI-related tokens. As of March 27, 2025, AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) showed positive price movements, with AGIX/USD up by 2.5% to $0.50 and FET/USD up by 2.0% to $0.75 (CoinMarketCap, March 27, 2025, 2:00 PM EST). The correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum was observed at 0.65 and 0.60 respectively (CryptoQuant, March 27, 2025, 2:00 PM EST). This suggests that the market sentiment towards cryptocurrencies, potentially boosted by the ETF launch, could also positively impact AI-related tokens. Furthermore, AI-driven trading algorithms might increase their activity in response to the ETF's market impact, leading to higher trading volumes in AI tokens. On the day of the announcement, trading volumes for AGIX and FET increased by 30% and 25% respectively, reaching $100 million and $80 million (CoinMarketCap, March 27, 2025, 2:00 PM EST). This indicates a potential trading opportunity in the AI-crypto crossover, as investors might look to capitalize on the increased interest and liquidity in these tokens.
Eric Balchunas
@EricBalchunasBloomberg's Senior ETF Analyst and acclaimed author, co-hosting Trillions & ETF IQ while bringing deep institutional investment insights.
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