DRW | Best Overall ETF Liquidity Provider/Market Maker | Best Market Maker/Authorised Participant – Equity ETFs | Best Market Maker/Authorised Participant – Fixed Income ETFs | Best Market Maker/Authorised Participant – Cryptocurrency ETFs
Bernardus Roelofs, Head of ETF Institutional Sales & Trading, DRW, explains the firm’s commitment to the ETF industry that lies behind its wins this year.
What is the size and scale of your business at the moment?
Since our founding in 1992, DRW has grown from a small trading firm to a global powerhouse with over 2,000 dedicated employees. Today, we provide consistent liquidity across markets on five continents. Our presence spans physical, OTC, and listed markets, covering a wide range of asset classes such as commodities, ETFs, equities, fixed income, and FX. In each of these areas, we’ve built a reputation as a significant source of liquidity, and we take immense pride in supporting efficient, fair, and transparent markets.
Specifically for ETFs, our team of over 60 dedicated professionals plays a crucial role in ensuring liquidity across Europe. As a registered authorised participant, we actively provide competitive two-way prices for almost 90 per cent of the ETFs/ETPs listed in Europe, representing both major and smaller issuers.
Our comprehensive offering covers developed and emerging market equity ETFs, fixed income ETFs (including high-yield and EM debt), and Crypto ETFs/ETPs. Our ETF trading volume in 2024 reached an impressive USD1.7 trillion, up from USD1.3 trillion in 2023. We serve a broad network of institutional counterparties across EMEA, APAC, and the Americas – asset managers, private banks, wealth managers, and hedge funds – through RFQ platforms, chat, and phone. Notably, we are ranked as the fourth-largest ETF liquidity provider by volume on Bloomberg RFQe, underscoring our deep commitment to the industry.
What trends have you seen over the past year?
The European ETF market witnessed extraordinary growth in 2024, marked by several key trends. Record-breaking inflows and asset growth stood out, with net new assets reaching USD270.42 billion, surpassing the previous record of USD193.46 billion in 2021. The total ETF AuM in Europe climbed to a record USD2.27 trillion (Source: ETFGI).
Active ETFs emerged as a standout trend, gaining notable traction. Although active ETFs still account for just 2.5 per cent of total assets in Europe, their inflows nearly tripled to EUR19.1 billion from EUR6.7 billion in 2023 (Source: Morningstar).
Additionally, the launch of spot Bitcoin ETFs in the U.S. was a defining moment. In a groundbreaking move, 11 spot Bitcoin ETFs launched simultaneously, with the iShares Spot Bitcoin ETF (IBIT) becoming the most successful ETF launch ever, surpassing USD50 billion in assets within just 11 months (Source: Bloomberg).
Where do you see the ETF industry going in terms of products over the coming year?
The ETF industry shows no signs of slowing down. ETFs are becoming the preferred investment vehicle for an even wider range of investors. While existing products will continue to see increased adoption, we expect active ETFs to gain even more momentum. As this segment grows, we anticipate more traditional mutual fund providers will enter the market, driven by the desire to remain competitive in this rapidly expanding space.
How will your firm be able to support them?
Our strategy is clear: we will continue expanding our product coverage to match market developments and actively engage with new ETF providers. By doing so, we aim to provide strong liquidity and ensure easy access for all market participants.
What plans do you have for growing your business over the coming year?
Looking ahead, we are focused on three key priorities:
• Expanding our liquidity provision to our existing institutional counterparties, including harder-to-price ETFs like high-yield and emerging market debt.
• Building relationships with new institutional counterparties world-wide so they too can benefit from our competitive pricing.
• Actively engaging with the ETF ecosystem – including issuers, exchanges, RFQ platforms, and index providers – to drive further development of the ETF market.
Why do you think you won these awards?
Our success is a reflection of our unwavering dedication to price quality, coupled with continuous engagement with our institutional partners and issuers. By fostering a culture of trust and collaboration, we’ve built enduring relationships that drive collective growth and strengthen our standing in the industry. Winning these awards is a testament to our commitment to excellence, innovation, and leadership in the ETF market.
