ETF Series Solutions (ESS), a multiple series trust (MST) has filed with the Securities and Exchange Fund (SEC) as it plans for a new equity trading fund under the name iBet Sports Betting and Gaming ETF. This could make ETF Series Solutions (ESS) the second sports wagering exchange traded fund (ETF) in the market and will have a fair enough universe, provided it is approved by the Securities and Exchange Fund (SEC).

ETF Series Solutions (ESS) Regulatory Filing

The prospectus of ETF Series Solutions (ESS) that is dated August 27, 2021, mentions an expense and ticker ratio. This could mean that ETF Series Solutions (ESS) is very close to entering the market. ETF Series Solutions (ESS) will trade under the symbol “IBET” at NASDAQ. ETF Series Solutions (ESS) will encounter a 0.79% or $79 on every $1000 of investment annually.

The regulatory document mentions that ETF Series Solutions (ESS) plans to own real estate that would be used for gaming activities, operate a mobile sports betting platform, operate online communities for gaming, operate an online multiple player video gaming platform, and also develop educational tools for online gaming.

According to the regulatory document filed with the Securities and Exchange Fund (SEC), atleast 80% of the net assets, plus the amount of any borrowings for investment purposes will be invested in securities of organizations that operate in the gambling and casinos sub-industry or in organizations who the primary business is to own, develop or operate gaming (including esports and iGaming) or sports betting software, venues, media content or electronic platforms.

ETF Industry Success Factors

The ETF industry, just like the sports betting industry and the iGaming industry is extremely competitive and therefore, issuers on a regular basis will mimic ideas that have been successful in the market in the past.

iBet Sports Betting & Gaming ET that will be operated by ETF Series Solutions (ESS) will be a direct competitor of Roundhill Sports Betting & iGaming ETF that was established in June 2020 and has assets under management to the extent of $40 million and trades under the symbol “BETZ”.

Many land-based casinos experienced closures or hardships in the account of the COVID-19 pandemic; however, Roundhill Sports Betting & iGaming ETF has thrived. Roundhill Sports Betting & iGaming ETF launched in 2020 after a number of sports betting companies and iGaming companies became public companies. Not many funds in recent times have had such great timing and this has led to the solidification of the thesis of online casino investments.

Differences between ETF Series Solutions (ESS) and Competitors