Key Takeaways
- • BlackRock launches iShares Flexible Equity Active ETF with wide investment latitude, enabling long/short positioning while maintaining net-long exposure and up to 25% commodity allocation; managed by Rick Rieder alongside Randy Berkowitz and Russ Koesterich, with expected launch within months pending SEC approval.
- • WisdomTree receives SEC approval for 24/7 trading of tokenized money market fund, marking the first registered tokenized mutual fund shares permitted round-the-clock trading and instant settlement in the U.S., applied to the $700 million WisdomTree Treasury Money Market Digital fund (WTGXX).
- • iShares Flexible Equity ETF complements existing $17 billion iShares Flexible Income Active ETF (BINC), applying similar active management agility to equity markets and signaling BlackRock's strategic expansion of flexible mandate products across asset classes.
- • WisdomTree's tokenized innovation bypasses traditional mutual fund constraints, enabling trading and pricing outside standard market hours on both WisdomTree Prime App (retail) and WisdomTree Connect App (institutional), leveraging blockchain infrastructure for capital markets settlement.
- • Regulatory milestone demonstrates SEC openness to tokenized fund infrastructure, with WisdomTree head of digital assets Will Peck crediting "constructive engagement with the SEC and FINRA" in securing exemptive relief necessary for 24/7 trading capability.
Summary
BlackRock is advancing its active ETF strategy with an application for the iShares Flexible Equity Active ETF, designed to offer portfolio managers substantial discretion across the equity landscape. The proposed product would permit long and short positions while maintaining net-long exposure, along with the ability to allocate up to 25% of assets to commodities. Rick Rieder, the marquee manager behind BlackRock's successful $17 billion iShares Flexible Income Active ETF (BINC), will lead the equity fund alongside co-managers Randy Berkowitz and Russ Koesterich. The filing indicates no ticker or fee structure has yet been established, though the fund is expected to launch within the coming months pending SEC approval.
The flexible equity ETF represents BlackRock's expansion of its tactical active management approach, extending the proven model of BINC—which applies similar nimbleness to fixed income—into equities. This positioning allows institutional investors to access dynamic allocation strategies without constraining manager discretion through rigid mandate boundaries.
Separately, WisdomTree has achieved a regulatory milestone by securing SEC approval to offer 24/7 trading of its WisdomTree Treasury Money Market Digital fund (WTGXX), a fully tokenized, cash-equivalent mutual fund carrying $700 million in assets. The approval marks the first instance of registered tokenized mutual fund shares permitted to trade and settle instantly around the clock within U.S. markets, circumventing traditional mutual fund restrictions that limit pricing and trading to market hours. The fund, launched in 2023, is accessible to retail investors via the WisdomTree Prime App and to institutional investors through the WisdomTree Connect App.
Will Peck, WisdomTree's head of digital assets, characterized the approval as evidence of regulatory receptiveness to blockchain-based settlement infrastructure, stating the firm is "grateful for the constructive engagement with the SEC and FINRA" that enabled "exemptive relief and regulatory approvals necessary to bring this innovation to market." The 24/7 capability represents a structural improvement to investor experience by eliminating traditional trading windows and enabling continuous liquidity in cash-equivalent positions—a capability particularly valuable for institutional treasurers and liquidity managers requiring flexibility beyond standard market hours.
The flexible equity ETF represents BlackRock's expansion of its tactical active management approach, extending the proven model of BINC—which applies similar nimbleness to fixed income—into equities. This positioning allows institutional investors to access dynamic allocation strategies without constraining manager discretion through rigid mandate boundaries.
Separately, WisdomTree has achieved a regulatory milestone by securing SEC approval to offer 24/7 trading of its WisdomTree Treasury Money Market Digital fund (WTGXX), a fully tokenized, cash-equivalent mutual fund carrying $700 million in assets. The approval marks the first instance of registered tokenized mutual fund shares permitted to trade and settle instantly around the clock within U.S. markets, circumventing traditional mutual fund restrictions that limit pricing and trading to market hours. The fund, launched in 2023, is accessible to retail investors via the WisdomTree Prime App and to institutional investors through the WisdomTree Connect App.
Will Peck, WisdomTree's head of digital assets, characterized the approval as evidence of regulatory receptiveness to blockchain-based settlement infrastructure, stating the firm is "grateful for the constructive engagement with the SEC and FINRA" that enabled "exemptive relief and regulatory approvals necessary to bring this innovation to market." The 24/7 capability represents a structural improvement to investor experience by eliminating traditional trading windows and enabling continuous liquidity in cash-equivalent positions—a capability particularly valuable for institutional treasurers and liquidity managers requiring flexibility beyond standard market hours.
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