This edition of the Investments Roundup features Corastone launching a private market platform, BlackRock issuing a report on growth in ETF adoption, SMArtX adding 17 strategies to its marketplace, VanEck launching a Solana ETF, AssetMark adding private market access, Cerulli reporting on the business benefits of outsourcing portfolio construction, Franklin Templeton introducing an XRP ETF, SEI expanding its tax management and overlay capabilities, Goldman Sachs acquiring Innovator for $2 billion, iCapital launching distributed ledger technology and an alts modeling tool, State Street debuting a leveraged loan ETF and BlackRock launching a Nasdaq 100 ETF with monthly income.
Larry's Take
Blockchain enthusiasts, including many entrepreneurs, have touted the benefits of blockchain technology that go far beyond cryptocurrency to decentralized finance (DeFi), tokenizing assets and other applications. This month’s roundup contains four stories including blockchains.
In the stories covering ETF launches, the providers are touting DeFi and other applications. VanEck is launching an ETF based on Solana as Franklin Templeton launches one based on XRP (commonly known as “ripple”). Each of them emphasizes the capabilities of the underlying crypto’s blockchain.
At the same time, Corastone launched a private markets platform incorporating blockchain technology to reduce transaction times, workload and friction. iCapital’s distributed ledger technology provided to Morgan Stanley incorporates blockchain technology for the same purposes. Crypto’s true value – the blockchain – is emerging.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@ascentix.com.
Corastone Launches Private Markets Platform With Apollo, Franklin Templeton, KKR And Morgan Stanley
Corastone launches a new private market investing platform, with its first clients being Apollo, Franklin Templeton, KKR and Morgan Stanley. Corastone said its platform streamlines private market access and automates manual workflows, using blockchain technology to reduce transaction times and minimize operational friction.
Unlike legacy solutions that rely on multiple systems and integrations, Corastone’s system connects general partners, wealth managers and fund managers on a single platform, the firm said. This helps to reduce operational risk and support the development of new investment products and distribution models, it said. Future capabilities to be added include capital calls, valuation updates, redemptions and transfers.
“We are thrilled to see the Corastone platform live with such a distinguished group of industry leaders,” said Rashad Kurbanov, Co-Founder and CEO at Corastone. “This milestone validates our vision for how private markets should operate: faster, more transparent and ready to scale.”
BlackRock Survey Shows ETF Adoption Continues To Grow – Especially Among New Investors
There is a “surge” in new ETF investors, driven by demand for convenience, cost efficiency and diversification, according to BlackRock’s first U.S. “People & Money” report. Among the estimated 19 million Americans who plan to invest in ETFs over the next 12 months, 44% are expected to be first-time ETF investors, BlackRock says.
At the same time, 56% of current ETF investors intend to increase their allocations, according to an online survey of 5,220 U.S. adults sponsored by BlackRock and conducted by YouGov. The findings come shortly after Cerulli Associates said ETFs have emerged as the fastest growing product on digital investing platforms.
“We’re witnessing a pivotal moment as individual investors embrace ETFs for their efficiency and transparency,” said Amy Jenkins, Head of U.S. Direct Investing at BlackRock. “The predicted surge in first time ETF investors reflects a broader shift in investor preferences toward simplicity, accessibility, and digital-first experiences.”
SMArtX Adds 17 New Strategies To Its Marketplace
West Palm Beach, Florida-based SMArtX Advisory Solutions adds 17 strategies to its marketplace, bringing its total offerings to 1,572 strategies. Managers joining SMArtX’s platform for the first time are Aberdeen Investments with four new strategies and C.J. Lawrence with one strategy.
Several of SMArtX’s existing partners expanded the number of strategies they offer, including Genter Capital Management, J.P. Morgan Asset Management, Parametric Portfolio Associates, Schafer Cullen and Uniplan Investment Counsel. With the additions, SMArtX now has 321 partner firms represented on its platform.
“This month we significantly grew our manager marketplace with new investment products,” said Hunter Hager, Head of Asset Manager Solutions at SMArtX. “Not only are we expanding our investment offerings with these new products, but we are also giving advisors a dynamic toolkit that helps them scale their practice and deliver truly differentiated value to every client.”
VanEck Launches ETF Giving Investors Exposure To Solana Token
VanEck launches the VanEck Solana ETF (VSOL) on Nasdaq, saying the new exchange-traded fund gives investors exposure to SOL, the native token of the Solana blockchain network. “Solana’s historical high-performance, low-cost architecture has made it a leading blockchain for onchain activity, processing tens of millions of transactions per day across decentralized finance (DeFi), gaming, NFTs, and tokenized real-world assets,” according to VanEck.
Solana was designed for scalability and efficiency, and combines a Proof of History (PoH) mechanism with Proof of Stake (PoS) consensus that VanEck said allows for fast block times and low transaction costs. The firm launched VanEck Bitcoin ETF (HODL) and VanEck Ethereum ETF (ETHV) in 2024. VanEck now has over $5.2 billion in assets for its digital asset solutions that also includes multi-asset private funds and 29 crypto exchange-traded products in Europe, it said.
“We launched VSOL now because Solana has reached an inflection point, in terms of technology and real-world adoption,” said Kyle DaCruz, Director of Digital Assets Product at VanEck. “Solana’s high-performance, low-cost architecture has made it one of the most actively used blockchains, processing tens of millions of daily transactions across DeFi, gaming, NFTs, and tokenized real-world assets.”
AssetMark Adds Private Markets Access In Partnership With Apollo, Carlyle, KKR And StepStone Group
Concord, California-based AssetMark announces its expansion into private markets, adding interval funds and professionally managed strategies to its platform. It is partnering with alternative asset managers Apollo, Carlyle, KKR and StepStone Group.
The new funds are Apollo Diversified Credit, Carlyle Tactical Private Credit, KKR Real Estate Select Trust and StepStone Private Infrastructure Fund — all are integrated into AssetMark’s UMA technology. AssetMark also offers growth, income and preservation strategies, with a $10,000 minimum investment amount. The firm, founded in 1996, had over $158 billion in platform assets as of Sept. 30.
“AssetMark’s expansion into private markets is a natural evolution of our strategic growth platform,” said Lou Maiuri, Group CEO and Chairman of AssetMark. “By bringing together the expertise of Apollo, Carlyle, KKR, and StepStone Group within our unified investment ecosystem, we’re equipping advisors with an ‘easy button’ to help clients pursue new sources of returns and diversification – reflecting the changing landscape of wealth management and the opportunities ahead.”
Cerulli Edge: Advisory Businesses Benefit From Outsourcing Portfolio Construction
Financial advisors who utilize model portfolios instead of doing portfolio construction in-house save a significant amount of time, spending an average of just 10.6% of their time on investment management, according to Cerulli in its latest Cerulli Edge—U.S. Asset and Wealth Management Edition. The financial professionals who outsource much of their portfolio construction in this way tend to be younger advisors, who have fewer staff, the report said.
The firm also reports that advanced planning techniques, such as tax management, are valuable for advisors trying to acquire affluent and high net worth clients. Cerulli also found that 87% of outsourcer advisors find value in competitive product information, advisor best practices, and access to portfolio managers and product specialists. For model providers, Cerulli recommends focusing on such offerings to attract and retain advisors.
“In many cases, broker/dealer (B/D) training programs have done a good job educating up-and-coming junior advisors on the benefits of leveraging model portfolios,” says Kevin Lyons, Senior Analyst at Cerulli. “As a result, they are more likely to feel comfortable and confident relying on financial planning and, increasingly, tax management as the primary pillars of their competitive positioning.”
Franklin Templeton Launches New ETF Providing Exposure To XRP
San Mateo, California-based Franklin Templeton introduces an ETF that provides exposure to XRP, a digital asset used for cross-border payments commonly known as “ripple” because it was launched by Ripple Labs. The new fund, the Franklin XRP ETF, trades on NYSE Arca as XRPZ. The ETF is structured as a grantor trust that holds XRP, and it seeks to track the digital asset’s performance as measured by the XRP-Dollar Reference Rate (New York Variant).
Franklin Templeton’s other digital asset ETP offerings include the Franklin Bitcoin ETF, the Franklin Ethereum ETF and the Franklin Crypto Index ETF. Franklin Templeton is a subsidiary of Franklin Resources, which had $1.69 trillion in assets under management (AUM) as of Oct. 31.
“Blockchain innovation is driving fast-growing businesses, and digital asset tokens like XRP serve as powerful incentive mechanisms that help bootstrap decentralized networks and align stakeholder interests,” said Roger Bayston, Head of Digital Assets at Franklin Templeton. “Within a diversified digital portfolio, we view XRP as a foundational building block. XRPZ provides regulated custody, daily transparency and liquidity without the operational complexity of holding the token directly.”
SEI Expands Tax Management And Overlay Capabilities
Oaks, Pennsylvania-based SEI announces expanded tax management and overlay capabilities, providing advisors with greater control and more options for tax minimization for their clients. The new tools are available on both SMAs and UMAs. New capabilities include tax analysis on transitioning stocks and ETFs, coordinating trading and overlay management to avoid wash sales, capital gains budgeting and automated tax-loss harvesting.
SEI also introduces an Estimated Taxes Saved Report to help advisors illustrate to investors the value added from tax management. SEI had approximately $1.8 trillion in client assets under management, advisement or administration as of Sept. 30.
“Taxes are the biggest drag on investor returns, and for advisors, that means every dollar saved through tax optimization is an opportunity to deepen client relationships, differentiate their approach, and deliver measurable value,” said Erich Holland, Head of Client Experience for the advisor business at SEI. “By proactively managing tax outcomes, advisors can help clients keep more of what they earn, while streamlining their operations and driving organic growth for their business.”
Goldman Sachs Acquires Innovator Capital For $2 Billion
Goldman Sachs signs an agreement to acquire ETF firm Innovator Capital Management, based in Wheaton, Illinois, for about $2 billion in cash and equity, subject to the achievement of unspecified performance targets. Goldman Sachs said that the transaction will expand the currently available and planned future ETFs of Goldman Sachs Asset Management. Innovator managed $28 billion of assets under supervision (AUS) across 159 defined outcome ETFs as of Sept. 30, using income, targeted buffer and growth strategies, the firms said.
As of that date, Goldman Sachs Asset Management and Innovator managed over 215 ETF strategies combined, representing more than $75 billion in total AUS, which makes Goldman Sachs a top 10 active ETF provider, they said, citing Morningstar data. Goldman Sachs was advised by Goldman Sachs Global Banking and Markets as financial advisor and Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher as legal counsel, it said. Innovator was advised by Oppenheimer & Co. as financial advisor and Vedder Price as legal counsel.
“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, CEO and Chairman of Goldman Sachs. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products investor portfolios.”
iCapital Debuts Distributed Ledger Technology And Alts Allocator Tool
New York City-based iCapital launches distributed ledger technology (DLT) to improve efficiency in alternative investment funds. The blockchain-based technology will be used by Morgan Stanley Wealth Management to streamline investor onboarding and pre-trade processing in its alts business. The DLT integration automates subscription document review and remediation between Morgan Stanley, general partners and fund administrators, reducing manual reconciliations and data errors, iCapital said.
“By integrating iCapital’s distributed ledger technology into trade workflows, we’re streamlining the alternative investment process reducing friction, accelerating time to trade, and enhancing transparency and efficiency for clients and the broader investment ecosystem,” said Lawrence Calcano, Chairman and CEO of iCapital.
iCapital also announces a partnership with Brookfield to launch an alts modeling tool. The Alts Allocator, based on the iCapital Architect portfolio construction tool, lets advisors model the potential impact of adding alts on the portfolios of three high net worth investor personalities. Developed from Brookfield alts research, the different profiles represent a traditional investor, an “Emerging Adopter,” and an alts enthusiast. Advisors can model the projected impact of adding alternative assets — such as infrastructure, real estate, private equity or private credit — to each of their portfolios.
State Street Launches A New Leveraged Loan ETF
Boston-based State Street Investment Management introduces a new ETF offering exposure to the leverage loan industry. The State Street SPDR S&P Leveraged Loan ETF (LVLN) is designed to track the S&P USD Select Leveraged Loan Index, a broad benchmark of U.S. dollar leveraged loans of $500 million or more.
With a gross expense ratio of 0.40%, the ETF is low cost when compared to similar offerings available in the U.S., State Street said. State Street had $1,848.02 billion in ETF AUM and over $5 trillion in AUM as of Sept. 30, the firm said.
“Investors seeking to add income and diversification to their fixed income portfolios continue to turn to leveraged loans, which have historically shown a low correlation to Treasuries and investment-grade corporates,” said Anna Paglia, Chief Business Officer for State Street Investment Management. “With the addition of LVLN, our fixed income ETF offerings now include both active and index-based strategies to meet client needs for gaining access to the fast-growing leveraged loan market.”
BlackRock Launches Outcome ETF Tracking Nasdaq 100 With Monthly Income
BlackRock introduces an ETF designed to deliver monthly income while tracking the Nasdaq 100 Index. The iShares Nasdaq Premium Income Active ETF (BALQ) is managed by Raffaele Savi, Global Head of BlackRock Systematic, along with a portfolio team. The sources of income for the ETF are equity positions and Nasdaq 100 call options.
BlackRock’s outcome ETFs include the iShares U.S. Large Cap Premium Income Active ETF (BALI). BlackRock had more than $5 trillion in AUM, including more than $100 billion in active ETFs, as of Nov. 5, the firm said.
“The iShares active premium income duo – BALI and BALQ – offers investors useful building blocks for income-focused portfolios,” said Elise Terry, U.S. Head of iShares at BlackRock. “These strategies help wealth advisors and individual investors access upside potential with enhanced income – a strong combination for those seeking long-term income and growth solutions.”
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