How could the record ETF closures and fund failures affect Preqin?
Market data demand for Preqin may soften amid record ETF closures The ETF industry is experiencing a period of high volatility, evidenced by the United States logging 110 ETF closures through May, a record high for that period. Specific funds, such as thirteen managed by Leverage Shares, were shut down due to their “inability to attract sufficient investment assets.” This high rate of fund failure and investor uncertainty could lead to a reduction in the demand for detailed market intelligence and data services provided by Preqin.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Within weeks
- The story
- Gone quiet
How it reaches Preqin
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The global ETF industry listed a record 1,397 new products worldwide through the end of May 2026. Leverage Shares was the issuer that launched the most new products, but that same brand is shutting down thirteen U.S. funds because they failed to attract sufficient investment. The United States led the market with 505 new listings.
The full event1independent outlet -
The ETF industry has seen a record 1,397 new products launched worldwide, but simultaneously, the United States recorded 110 closures through May. These closures, such as the thirteen funds managed by Leverage Shares, were attributed to their inability to attract sufficient investment assets, signaling investor caution.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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The facts so far
As reported. Each one links to where it comes from.
- ETFGI reported a record 1,397 new products worldwide through the end of May 2026.247wallst.com
- The United States logged 110 ETF closures through May, a record high for that period.247wallst.com
- Themes ETF Trust shut down thirteen Leverage Shares funds because of their “inability to attract sufficient investment assets.”247wallst.com
Why it matters
For Preqin, a financial services company providing market data, the stability and growth of the ETF market are crucial to its revenue stream. High rates of fund failure and investor uncertainty can cause institutional investors to pause or reduce their reliance on detailed market analysis, potentially lowering the demand for Preqin's services.
This situation highlights a tension within the rapidly expanding ETF sector. While the industry is setting records for new product launches, the simultaneous record closures suggest that many new funds are struggling to gain traction or maintain sufficient assets, indicating a potential market correction or quality control issue.
What we don't know yet
- Will the rate of ETF closures continue to rise or stabilize?
- How will institutional investors adjust their data consumption habits in response to market volatility?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- 247wallst.comOct 22
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.