ETF Industry Surges with Record 953 Launches in Just Two Months

The US ETF industry has experienced a record-breaking surge in new launches this year. By early May, 370 new ETFs had already hit the market, outpacing the 2025 tally of 290 by the same point. This number ballooned to 953 total launches by late July, putting the industry on track to surpass its all-time annual record of 1,095 set in 2021.

A significant proportion of these new ETFs incorporate derivatives, with a record-high 50% using options, swaps, or futures contracts. This is a notable shift from previous years, as leveraged and inverse products have become increasingly popular. There are now 701 such funds on the market, more than double the count at the end of 2024.

Some of these AI-focused offerings have already crossed $3 billion in assets under management. Meanwhile, 85% of this year's new launches are active strategies, meaning a human-designed algorithm is making decisions about what to buy and sell rather than passively tracking an index.

The market reception has been broadly positive for multiple spot Bitcoin and Ethereum ETFs that have launched this year. The approval of spot Bitcoin ETFs by regulators has created momentum for regulated, exchange-traded crypto exposure.