Core Insights - The ETF industry is experiencing a significant transformation with new entrants and innovative products, such as the LionShares US Equity Total Return ETF, which aims to provide tax advantages through dividend management [1][2][3] - The dominance of major players like BlackRock, Vanguard, and State Street is declining, capturing only 57% of investor flows in 2023, the lowest share on record [2] - The number of new ETF issuers has surged, with 60 new entrants in the past two years, marking the highest rate of new fund launches since the inception of ETFs in 1993 [3][4] Industry Trends - The ETF market has attracted over $2 trillion in investor cash recently, indicating strong demand for these investment vehicles [3] - The barriers to entry for launching ETFs have significantly decreased, allowing independent traders and smaller firms to enter the market more easily [8] - The ETF footprint is expanding, with ETFs now representing 36% of all US fund assets, a doubling of their market share over the past decade [6] Competitive Landscape - The competition in the ETF space is intensifying, with a tripling of launches since 2021, but closures are also rising, with one ETF shutting down for every five that launch [9] - The operational costs for launching an ETF have decreased, with estimates suggesting around $65,000 to set up a fund and $225,000 in annual operating expenses, down approximately 20% from a decade ago [8] - The challenge for new entrants is not just launching but also achieving commercial viability in a crowded market [10]