The world of asset management is undergoing a rapid transformation, driven by technological innovation and new investor needs. Exchange-traded funds (ETFs) are an example of how the investment industry is adapting, as asset managers and investors allocate increasing amounts of capital to these vehicles.

In recent years, investment in ETFs has soared, with 2024 marking a record year for ETF market inflows of €247 billion, surpassing the previous record of €159 billion in 2021.

The question now is whether ETFs will replace traditional investment funds or whether the tokenisation of funds will divert investment into a new range of funds.