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From Kirsten Bischoff, Opalesque New York:

BlackRock’s iShares ETF business is currently the largest global provider of ETFs, enjoying an astounding 46.6% share of the $1.1tln market (BlackRock’s closest competitor – State Street has only $160bn in assets). In its 2nd Quarterly ETF Update for 2010, ETF experts at the firm expressed expectations for the funds to continue their impressive growth through the rest of the year.

They also expect part of this growth to come from hedge funds. “We expect to see more hedge funds looking to create ETFs, with their own funds as the underlying exposure, in an effort to broaden their distribution capabilities,” says the report. The launch of the first actively managed long/short ETF, announced this summer seems to indicate this trend is well underway. Hedge fund firm Mars Hill Partners LLC launched the Mars Hill Global Relative Value ETF on July 9th.

ETFs continued to grow. There were 121 launches in 2Q2010. Although, overall ETF assets have decreased by 1% YTD, (a 4.4% increase in 1Q2010 and a 5.4% decrease in 2Q2010), much of this volatility has been performance driven. After putting $12.2bn and $4.8bn into E......................

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