[With Exchange-Traded Fund (ETF) launches and innovation continuing at a rapid pace, communication, understanding, and insight are paramount to successfully creating and utilizing these cutting-edge products. There is a great industry need to share perspectives on identifying market and product trends, decoding regulatory updates, and exploring emerging and innovative portfolio strategies.

The recent Fall 2025 ETP Forum, developed by The Expert Series, and hosted by ETF Global in NYC, addressed the above industry needs by attracting a highly sophisticated financial audience of Asset Owners, Asset Managers, ETF issuers, Family Offices, Endowments, Foundations, Financial Advisors, and Wealth Management Professionals. They rigorously selected expert ETF speakers and panelists who provided deep-dive discussions and first-hand insights into trending ETF industry topics. It also offered a unique opportunity to network with leaders across the ETF industry.

As part of their expanded event format, the ETP Forum was designed to provide two ETF Tracks. An ETF Investor track presented by the issuers to connect with financial investors in their products and an ETF Industry track presented by industry leaders offering extremely valuable insights, learning, and new opportunities to consider in the ever-expanding world of ETFs. Hearing directly from product creators and industry leaders provided invaluable insights into ETF strategies, creating a transparent path to understanding these products more deeply.

The following provides highlights of some of the major sessions and discussions at the Fall 2025 ETP Forum.]

ETF Investor Track

Active Management in ETFs: Beyond the Wrapper – This panel discussion focused on the rapid growth and innovation within the actively managed ETF space. In 2022, there were just over 1,000 active ETFs with $330 billion in AUM, which has grown to over 2,500 products and $1.4 trillion in AUM. The growth in actively managed ETFs was described as a “perfect storm,” driven by a favorable regulatory landscape (specifically the “ETF Rule” 6c-11); sponsors’ adoption of the tax-efficient ETF structure; and growing client demand for differentiated investment products. The 6c-11 ETF Rule was a major catalyst, as it increased speed-to-market; mandated greater transparency; and allowed for custom baskets, which provided active managers with more flexibility in portfolio and tax management.

The panelists shared their firms’ unique approaches to active ETF management, covering strategies from leveraging in-house research and converting existing funds to partnering with external managers and focusing on niche investment securities. They also explored the expansion of active ETFs beyond traditional equity and fixed income into areas like private credit, digital assets, and enhanced income strategies. During the panel, it was discussed that active ETF assets could be at $4.2 trillion in AUM by 2030, representing 16% of total ETF assets compared to just 8% today.

The conversation concluded with a discussion on the importance of investor education and the future of product development, including how firms manage their ETF lineups and decide whether to close underperforming funds. All agreed that active ETFs will be a major area for growth and innovation in the ETF industry.

Options-Powered ETFs: The Derivative Renaissance – The panel discussion provided a comprehensive overview of the derivative-based ETF market, which has grown substantially in recent years, with a specific focus on option strategies. The panelists discussed the sector’s growth, attributing it to a search for alternatives to traditional fixed-income investments for income and hedging coming from the poor performance of 60/40 portfolios in 2022; demographic shifts looking for superior risk management and outcomes; and investor education changing the perception of derivatives from a “dirty word” associated with the financial crisis to a valuable tool for shaping portfolio risk and return profiles. They further explored the two main pillars of option ETFs: downside protection (buffered and hedged equity strategies) and income generation (covered calls, including zero-day options).

The conversation also covered the evolution from simple, systematic products to more active and sophisticated strategies; the critical importance of due diligence for advisors; and the operational innovations enabling this growth. Financial innovation – from new option contract types (e.g., FLEX options and zero-day-to-expiry [0DTE] contracts) to the ETF wrapper itself – is making sophisticated strategies that were once the domain of hedge funds accessible to a broader range of investors through ETFs.

The panelists concluded by identifying future tailwinds, including the growing conversion of mutual funds to ETFs; proactive partnerships with sophisticated asset managers (e.g., multi-strategy hedge funds) to bring their complex strategies to market in a liquid, accessible wrapper; and international expansion as the next major growth frontier for these products.

Defined Outcome ETFs: Structuring Certainty in Uncertain Markets – This was a panel discussion about the evolution, application, and future of defined outcome ETFs. The growth of the category from a single product in 2019 to over 400 ETFs representing roughly $70 billion in assets was offered as evidence of strong investor demand. The panelists explored the initial investor need that these products were created to solve – capital preservation and predictable risk management after a long bull market. They discussed how market infrastructure and innovation, particularly the liquidity of FLEX options, enabled their growth. Key topics included the use of these ETFs as a bond alternative; their role in core equity and alternatives sleeves; and common misconceptions regarding their complexity and liquidity.

The conversation also covered their performance during volatile periods, like 2020, 2022, and April 2025, citing lower standard deviation and high upside capture and the stable performance of defined outcome ETFs (in terms of spreads and premium/discounts) during the market volatility of April, as proof of their structural resilience. The panelists’ statements encouraged financial advisors to reconsider traditional portfolio construction, particularly the role of bonds or fixed-income. Their arguments for Defined Outcome ETFs as a “middle ground” solution could lead to increased adoption. 

They concluded with a look at the future of the space, which is expected to include the replication of structured products (e.g., auto-callable notes) in the more liquid and tax-efficient ETF wrapper, the growth of “laddered” ETFs to mitigate timing risk, and the expansion of defined outcome strategies into more volatile asset classes, like emerging markets and Bitcoin.

Crypto ETFs: Navigating the Next Phase of Digital Asset Access – The panel discussion focused on the rapidly evolving landscape of crypto ETFs. The panelists covered the foundational structures of crypto products (33 Act vs. 40 Act funds), contrasted the ETF wrapper with alternative vehicles like Digital Asset Treasuries (DATs), the critical integration of features like staking to enhance returns, and the impact of new generic listing standards that accelerated the launch of new products.

A central theme of the discussion was the market’s maturation from a focus on simple access to a demand for more strategic allocation decisions and portfolio-building tools, underpinned by an increasingly accommodating regulatory environment and the need for robust investor education. The panelists identified the next wave of innovation as being more complex crypto ETF products, including leveraged funds, inverse funds, defined outcome strategies, and diversified index funds.

ETF Industry Track

ETF Legal & Share Class Structures: A Regulatory Crossroads – The panel discussion covered several key trends and operational issues in the Exchange Traded Products (ETP) industry. The panelists began by analyzing the operational and strategic challenges of adding ETF share classes to mutual funds, including communication hurdles between intermediaries and transfer agents; distribution challenges and strategies; and tax implications. The conversation then shifted to a comparison of US and European markets, particularly in the areas of crypto ETPs and leveraged products, where Europe was noted to have a more developed crypto market. The panel also explored the mechanics, benefits, and significant risks of tax-deferred 351 exchanges, including the failure of diversification or 80% ownership tests, which could blow the tax-free status for all participants. Finally, they discussed liquidity concerns with private credit ETFs; the impact of new regulations like the Names Rule and tailored shareholder reports; and the management of VC/PE funds.

The panelists repeatedly emphasized that new product structures, such as ETF share classes and 351 exchanges, introduced significant operational and workflow challenges that required careful planning and system development, which would most probably temper a rush of new activity in these areas. The stark warnings about the legal and tax risks of improperly executed 351 exchanges could serve as a crucial caution for advisors and investors considering this strategy. Furthermore, the insights into Europe’s more mature crypto and leveraged ETP markets could help US market participants anticipate future product development and potential regulatory responses.

Distribution in the ETF Era: Getting on the Radar – This was a panel discussion focused on the critical challenges and strategies for successfully distributing ETFs in a crowded market of over 4,400 products. The panelists discussed that the success of an ETF depended less on the wrapper itself and more on traditional factors like performance, fees, and a robust distribution strategy.

Key topics included the immense difficulty and cost of gaining platform accessibility; the necessity of having an active sales force (“boots on the ground”); the challenge of properly incentivizing sales teams to sell new products; and the question of whether there were any strategic differences in distribution compared to mutual funds. The conversation provided a realistic overview of the financial and logistical hurdles new and existing issuers faced when bringing ETFs to market.

It was contended that distribution structures for ETFs were not substantively different from those for mutual funds, with research showing that the success and failure rates of new products were comparable across both wrappers and that distribution challenges were similar. Panelists repeatedly returned to the idea that an ETF wrapper was not a magic bullet and that active, strategic distribution was paramount to gathering assets.

A View from the Exchanges: ETF Innovation at the Infrastructure Level – This was a panel discussion featuring representatives from Nasdaq and CBOE. The conversation centered on the evolving ETF landscape and the role of exchanges. Key topics included the emergence of new listing venues like the Texas Stock Exchange; the highly anticipated approval of ETF share classes for mutual funds; and the operational support exchanges provided for new and existing issuers. The panelists detailed recent market structure enhancements, such as new processes for market-on-open and discussed their preparations for potential 24/5 trading. They also covered investor protection mechanisms, market maker incentive programs, and the adoption of new technologies like AI and tokenization to innovate and improve market surveillance. The discussion concluded with thoughts on future market complexities and the role of ETFs in volatile environments.

The statements made reassured the audience, particularly ETF issuers and investors, that the major exchanges were proactively addressing the industry’s biggest challenges. Their detailed plans for enhancing market-on-open procedures, preparing for 24/5 trading, and improving market maker incentives demonstrated a commitment to maintaining orderly markets amidst rapid growth and innovation. Discussions on tokenization could signal to the market that traditional finance entities were seriously integrating blockchain technology, potentially accelerating its adoption.

Custodians in the Spotlight: Enabling Scale and Stability – The panelists provided a behind-the-scenes look at the critical role of service providers in the ETF ecosystem, emphasizing how their capabilities directly impacted trading costs, tax efficiency, and risk mitigation for funds. They covered the challenges and operational requirements of launching complex products involving options, derivatives, and cryptocurrencies. Key themes included the necessity of early and frequent communication between issuers and service providers; the importance of a deep operational bench for rapid problem resolution; and the strain on the entire industry’s infrastructure due to the high volume of new and innovative product launches. The discussion also touched on emerging trends like crypto ETFs with staking; the potential for ETF share classes; and the race to market for novel products.

The discussion had a significant impact on the audience of ETF issuers and prospective issuers. It underscored that launching an ETF, particularly a complex one, is not just about a good idea but also about selecting partners with deep, proven operational expertise. The conversation served as a practical guide to the due diligence issues that should be performed on service providers and highlighted the importance of treating them as strategic partners rather than just vendors. It may have tempered expectations about launch timelines while reinforcing the need for robust internal and external operational teams.

Trading ETFs: Liquidity, Execution, and Market Efficiency – The panel discussion focused on the evolution of ETF trading efficiency and explored the key drivers of this efficiency. They began by deconstructing the components of an ETF spread, emphasizing the costs of the underlying basket, operational fees, and the pricing of active management risk. A central theme was the critical importance of communication and “partnership” between ETF issuers and market makers for maintaining tight spreads and healthy liquidity. The conversation then shifted to the structural changes in the market, particularly how mutual fund-to-ETF conversions have altered the typical growth and trading profiles of new funds, creating new challenges for market makers.

Finally, the panel addressed the strain on the ecosystem caused by the sheer volume of new ETF launches, which has thinned competition and increased the need for specialized execution solutions to access liquidity effectively. The discussion concluded with an audience question about the role of technology and AI, with panelists affirming that while automation is crucial for efficiency, the human element of communication and relationships remains indispensable in a complex market.

The panelists’ statements served as a practical guide and a warning for participants in the ETF market. For new and existing ETF issuers, the discussion highlighted that a successful launch requires more than a good idea; it demands a sophisticated capital markets strategy and deep, symbiotic relationships with market makers. For advisors and investors, the conversation underscored that best execution is becoming more complex and that not all ETF liquidity is apparent on screen. The insights could prompt asset managers to invest more heavily in dedicated capital markets talent or outsourced solutions to navigate this increasingly competitive environment.

UCITS & Global ETFs: Bridging Borders, Expanding Access – This was a panel discussion focused on the European ETF market, specifically for an audience of North American asset managers considering an expansion into the European market. The panelists, representing legal, portfolio management, indexing, and platform solutions experts, discussed the key similarities and differences between the US and European ETF landscapes. Major topics included the regulatory environment for active ETFs in Europe (particularly in Ireland); the various strategies for market entry; the fragmented nature of European distribution; and emerging product trends like options-based strategies and the growth of retail savings plans in Germany.

The conversation emphasized that while Europe presented a significant growth opportunity, they strongly positioned the white-label platform model as the most pragmatic entry strategy, potentially steering firms away from more costly and time-consuming “build” or “buy” approaches. The detailed discussion on the fragmentation of the European market and the critical need for local distribution expertise served as a crucial piece of advice, helping firms avoid common pitfalls and structure their European expansion more effectively.

Final Thoughts

ETF Global’s Fall 2025 ETP Forum was designed to provide a dynamic event to explore and address the unfolding benefits, challenges, issues, and dynamics of the fast-evolving ETF universe. It successfully created a comprehensive agenda of leading ETF industry topics and a vibrant atmosphere of learning and exchanging ideas by marrying the leading voices in Exchange-Traded Funds with an audience of sophisticated financial professionals eager to engage these experts.

The conversations took place against the backdrop of a booming ETF industry characterized by intense product innovation. The detailed information and insights shared can significantly influence ETF issuers, financial investors, and industry leaders. It was also good to hear the collective warnings from the panelists on the specific challenges ahead for the industry; the need for thorough due diligence; and a “client-first” approach to product development that should accompany rapid innovation in the financial industry.

The next ETF Global semi-annual ETP Forum will be on June 2, 2026 in New York City.

This article was originally published here and is republished on Wealthtender with permission.

About the Author

Bill Hortz

Founder Institute for Innovation Development

Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.

[Wealth management firms have been sitting on valuable client data for decades because there has not been an efficient way to bring it together and strategically put it to use to guide firm actions and better serve clients. Now with Agentic AI technology, financial firms can turn their inherent business knowledge – meeting notes, CRM records, emails, client documents, conversations, and other engagement signals – into complete, trusted business intelligence and quickly convert it into coordinated, end-to-end execution.

A new generation of agentic AI platforms is moving the industry beyond simple automation and into a world where systems do not just surface insights – they execute work. At the forefront of this shift is Zeplyn, an AI-native workflow intelligence platform purpose-built for wealth management firms.

Founded by former Google engineers Era Jain, Co-Founder & CEO, and Divam Jain, Co-Founder & CTO, Zeplyn recently introduced Zeplyn Agent Nexus – a context-aware research and execution engine designed to help firms finally turn fragmented client intelligence into finished work at scale.

We spoke with the founders about why Zeplyn Agent Nexus represents a turning point for the industry, and how agentic AI is redefining growth, capacity, and personalization in wealth management.]

Hortz: How does Zeplyn Agent Nexus represent a major evolution in how wealth management firms use AI?

Divam Jain: The first wave of AI in wealth management was largely observational. It summarized meetings and surfaced insights after the fact. It was helpful, but passive.

Zeplyn Agent Nexus represents a shift from knowing to doing. Instead of telling a wealth manager that a client mentioned an asset sale, Zeplyn can draft the personalized outreach, update the CRM workflow, and handle the follow-up, end-to-end. That distinction is subtle, yet profound.

Era Jain: We learned early on that about 60% of meaningful client data is shared in meetings, yet historically less than 25% ever made it into structured systems. Once we solved for capture and accuracy, the real opportunity became clear: intelligence only creates value when it’s activated.

Through our Ask Zeplyn functionality powered by Agent Nexus, for example, wealth managers can now ask complex, real-world questions and immediately request action. That is the leap from AI as a reporting tool to AI as an execution engine, and we are going to start seeing more of this across the entire industry.

Hortz: Can you give an example of how that plays out in practice?

Era Jain: A wealth manager might ask: “Identify clients from last month’s meetings who mentioned an asset sale but haven’t received an estate-planning follow-up.”

Zeplyn Agent Nexus evaluates meeting notes, cross-references CRM data, reviews email history, builds the client list, and drafts personalized outreach that is ready for wealth manager review.

That entire workflow used to take hours across multiple systems. Wealth managers routinely tell us that follow-ups alone can consume nearly 30% of their workweek. Agentic AI compresses that into minutes without sacrificing personalization or control.

Hortz: How exactly does a system of specialized AI agents take dispersed data from across the firm and turn it into fully executed actions? How does this structurally happen?

Divam Jain: Agentic systems are fundamentally different from traditional AI tools. At the core is an orchestration layer. When a complex request comes in, the system breaks it down into sub-tasks and assigns them to specialized agents.

One agent may query the CRM. Another evaluates meeting transcripts. Another handles tone-matching and compliance-aware drafting. The orchestration layer determines which agents are needed, what data they can access, and in what sequence.

The hardest part is context engineering, ensuring each agent has enough information to be accurate, but not so much noise that the results degrade or hallucinate. That is where guardrails and domain specificity matter.

Era Jain: This is not something you can build as a general-purpose tool. Wealth management workflows are nuanced. You need to understand how wealth managers talk about sensitive topics, how firms differ in style, and how compliance fits into every step. That industry intelligence is embedded directly into Zeplyn Agent Nexus.

Hortz: With a lack of trust often being the biggest barrier to AI adoption, how do you balance automation with wealth manager oversight?

Era Jain: We are firm believers in human-in-the-loop design. Zeplyn Agent Nexus does not act autonomously; it acts on instruction.

Wealth managers initiate requests through Ask Zeplyn. The agents handle the heavy lifting by breaking down tasks, gathering data, and drafting outputs, while the wealth manager always reviews and approves the final result. This is accelerated execution, not delegated authority.

Divam Jain: One thing we heard consistently from firms was, “I want it done my way.” That became a design principle for us. Wealth management firms do not just want AI outputs they can tweak; they want systems that are built to reflect how their firm operates.

With Zeplyn, we work directly with firms to configure the system itself – how information is structured, how workflows run, and how outputs are generated – so the AI aligns with the firm’s preferred language, processes, and standards. Then, at the individual level, wealth managers can still review, edit, and refine every output before it is finalized.

That combination is what builds trust. The AI is not imposing a generic model of “how advice should look.” It is operating inside the firm’s own model and acting like a skilled chief of staff who already understands how things are done.

Hortz: Beyond individual productivity, how does agentic AI become a growth engine at the firm level?

Era Jain: Growth in wealth management has always been constrained by capacity. Personalization traditionally does not scale.

When you save wealth managers 50–60% of the time they spend on admin, you dramatically expand their capacity to deepen relationships and pursue new opportunities. At the same time, the system ensures no opportunity falls through the cracks. Firms can surface “silent” opportunities, such as clients who experienced a life event but have not been engaged in months, and can now act proactively.

Divam Jain: At the enterprise level, Zeplyn Agent Nexus becomes a learning system. Leaders can analyze successful wealth manager behaviors, extract patterns, and turn them into playbooks for the rest of the firm.

You can ask the system to review recent high-performing discovery meetings and generate a best-practice guide for junior wealth managers. That is how firms scale institutional wisdom.

Hortz: As former Google engineers, what advice do you have for firms adopting agentic AI?

Era Jain: First, data integrity matters. AI is only as powerful as the data it can access. Firms should ensure that their CRM and meeting notes are being captured consistently. That is the engine’s fuel.

Second, the best way to implement this is to use it as a stress test. Do not just use it for the easy stuff. Push the system to handle complex queries and unique use cases. The more your team interacts with the AI, the more they trust it, and the more “agentic” your firm becomes.

Divam Jain: It is also important to shift your mindset around what agentic AI is. One of the biggest mistakes firms make is treating it like another piece of software. This is not about adding a tool to an existing workflow. It’s about rethinking how work gets done, about redesigning workflows so decisions and execution happen closer together.

This article was originally published here and is republished on Wealthtender with permission.

About the Author

Bill Hortz

Founder Institute for Innovation Development

Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.