I really hate seeing a firm slide into black hat territory, but that's what Simplify has done over the last few weeks. The story is simple: Simplify launched a 15bps money-market ETF (T-bills+Repos), SBIL, that seemingly overnight went from nothing to $2. It should be the most boring ETF launch in history, except it's not, because it's really just a money grab on their own shareholder base.
It should be the most boring ETF launch in history, except it's not, because it's really just a money grab on their own shareholder base. Here's the quote:Funds owning other funds in the same family isn't new, but Simplify's recent SBIL launch reaches a new level of greed-before-good. What used to be included cash management services inside the firm's derivative-based strategies (like CTA), is now a behind-the-curtain 15bps add-on that shareholders didn't ask for, but are now paying for.
What used to be included cash management services inside the firm's derivative-based strategies (like CTA), is now a behind-the-curtain 15bps add-on that shareholders didn't ask for, but are now paying for.