Trading options contracts on expiration day, also known as short-dated options, averaged more than 40% of SPY options volume in 2023. When Wednesday expirations were added to five ETFs1 in November 2023, short-dated trading has gained market share in all five of them. The industry has been discussing the reasons behind the short-dated trading phenomenon and debating whether additional expirations should be considered for single stocks.

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2023 was an exceptional year for global equity ETPs. Until the fourth quarter, profits were limited generally to a few tech companies, but gains broadened in Q4. We review fund flows, returns and activity in multiple equity ETP categories.

Actively managed ETPs now account for 1/3 of all U.S. ETP listings, accounting for 6.5% of AUM and 22.5% of fund flows in 2023. Futures-based Crypto ETP activity grew as the year progressed, likely in anticipation of the 11-Jan-2024 launch of cash bitcoin ETPs.

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