The global ETF industry has left behind the phase where it had to prove the utility of its structure. With global assets nearing 20 trillion dollars, innovation is no longer focused on blindly expanding the market, but rather on sophisticated ETF structures to offer solutions that were previously exclusive to traditional mutual funds or private banking.
Which product innovation will gain the most traction? Experts from Brown Brothers Harriman (BBH) point to three key trends: Europe, digital assets, and fixed income.
In the opinion of Andrea Murray, Vice President of ETF at BBH, in the case of Europe, the entry of new participants into the ETF market will continue at a double-digit pace as asset managers expand distribution and innovate to meet investor demand.
“Unlike other regions, market entry will depend heavily on white-label providers: established brands will prefer flexible and modular services, such as distribution platforms and capital markets offerings, while smaller or lesser-known managers, including US RIAs, will continue to rely on comprehensive solutions. As the ETF issuer base grows in Europe, targeted digital education and marketing will remain the main drivers of retail and wholesale asset growth,” she argues.
For Patrick Farrell, ETF Product at BBH, the future of the industry involves digital assets. According to his forecast, Bitcoin ETFs will record record inflows in 2026. “As Bitcoin consolidates its role in institutional portfolios, ETFs have emerged as the preferred vehicle to gain exposure, offering liquidity, transparency, and ease of access. Increased availability on platforms and regulatory clarity will further reduce barriers, driving adoption among both retail and institutional investors,” he states.
According to his view, after underperforming major indices in 2025, investors may find value in an allocation to Bitcoin, backed by macroeconomic tailwinds and its growing utility as a diversification tool.
Lastly, Tim Huver, Head of US ETF Servicing, maintains that the greatest growth in the industry in 2026 will come from fixed-income ETFs, both in the number of launches and cash flow. “ETF product development will continue to evolve with ‘all-in-one’ portfolio solutions and multi-asset products, gaining a greater share of attention and capital in the retail market, providing professional portfolio management through model portfolio-type ETFs,” Huver argues.
