Setting a New Standard for ETF Partnership and Growth

2025 has proven to be a transformative year, underscoring how strongly investors are gravitating toward ETFs as a primary vehicle of choice. Following the exceptional growth trends of recent years, the US ETF industry reached a total AUM of $13.3 trillion by the end of 2025, driven by unprecedented net inflows exceeding $1.3 trillion for the year.  

This continued explosive expansion sets the stage for Tidal’s achievements, demonstrating that our specialized focus and strategic platform allowed us to capture outsized growth in a highly competitive and thriving market. 

Unprecedented Growth Driven by Investor Demand 

The ultimate validation of a fund structure is capital flow, and 2025 saw investor capital gravitate to Tidal-supported ETFs at a record-setting pace.  

Since 2023, Tidal’s AUM has grown at an average annual rate of 84%. This dramatically outpaced the robust annual growth of the overall US ETF market, which averaged 36.8% over the same period. In 2025 alone, Tidal-supported ETFs received a staggering +$22.5b in net inflows, representing a substantial 73% increase from 2024, and reflecting surging investor confidence in the products we facilitate. While Tidal proudly represented approximately ~3% of total US ETF industry inflows for the year, our impact on new products is even more pronounced. Tidal-supported funds accounted for approximately ~9% of total flows generated by all 2025 Launches industrywide, demonstrating that our new offerings are rapidly capturing investor interest and achieving critical scale faster than average. 

Industry Leadership and Sustainable Product Momentum 

Our focus is not simply on getting products to market, but on building high-quality, durable ETFs that meet long-term demand.  

Tidal facilitated 158 total ETF launches in 2025, marking a remarkable 93% increase over our 2024 volume. Considering the US industry launched approximately 1036 total ETFs in 2025 (a 39% industry increase from 2024), Tidal represented ~15% of all US ETF launches, a testament to our operational efficiency and client trust. A true measure of a platform’s quality is its product longevity. Tidal’s ETF Open-to-Close Ratio of 8.68 is 75% higher than the industry average of 4.95. This means that our clients’ ETFs have been more likely to succeed and remain open for the long haul, a critical indicator of the value we provide to partners over the full lifecycle of a fund.  

Building on this momentum, 2025 also marked a turning point as several large asset managers entered the ETF space for the first time. Firms such as Voya Financial, Transamerica, Pictet Asset Management, and AMG launched ETFs during the year, and Tidal facilitated many of these entries, reflecting the growing reliance on our platform among established institutions modernizing their product lineups. 

The surge in mutual fund to ETF conversions was another defining trend this year, with 62 funds representing ~$40 billion transitioning into ETFs and the average conversion size rising to nearly $800 million from about $700 million in 2024. This shift reflects a decisive change in investor preference as mutual funds saw ~$500 billion in outflows while ETFs attracted more than $1.3 trillion this year. Tidal supported multiple conversions through regulatory and operational guidance, helping managers modernize legacy vehicles and reposition strategies in the ETF wrapper.  

Section 351 conversions also gained significant attention as managers explored tax efficient ways to scale SMA strategies and transition legacy portfolios into the ETF wrapper. These transactions allow appreciated securities to be contributed without triggering immediate tax liabilities, and Tidal’s preparation across tax, regulatory, and operational workflows positioned the platform to support rising demand heading into 2026. 

Together, these structural shifts set the foundation for one of the most powerful themes this year, the rapid expansion of active ETFs across the US market. 

Strategic Focus on Active Management and Innovation 

Our growth is not accidental; it is the result of a deliberate strategy aligned with the most powerful industry trends of 2025: the definitive rise of Active ETFs in the US.  

Active ETFs are no longer a niche, especially now that they’ve surpassed passive products in total number of listings in 2025. Furthermore, approximately 85% of all new US ETF launches in 2025 were Active strategies. Tidal’s platform is highly aligned with this demand: approximately ~85% of Tidal’s ETFs are Active ETFs, positioning our clients directly in the high-growth segment favored by investors seeking alpha and downside protection.  

We also focus heavily on structural innovation.  

The US market saw significant growth in complex strategies like option-based income funds and thematic/derivative exposures, as investors sought specialized tools for yield and volatility management. This trend is mirrored in our offerings: ~50% of Tidal’s ETFs are Derivative-based, and ~35% are Equity-based, demonstrating our core competency in complex strategies that provide yield and tactical exposure.  

Our strategy of focusing on the needs of experienced, active managers is clearly paying off for our clients. 

A Growing Community of Partners 

The most significant metric for us is the trust placed in us by the clients we serve.  

We now proudly serve 90+ distinct ETF clients/issuers. This represents a dramatic 74% increase in our client base from 2024. This expansion highlights the industry’s increasing reliance on Tidal for operational excellence, regulatory guidance, and strategic market access, allowing portfolio managers to focus on what they do best: generating alpha. Tidal Financial Group’s success in 2025 is a direct reflection of our clients’ success. We are deeply grateful for their trust and collaboration.  

As we look forward to 2026, we remain dedicated to providing the platform, experience, and strategic insight necessary to keep launching, and successfully managing the next generation of ETFs.