In early April, BlackRock’s world ETF listed on the Deutsche Boerse experienced a sudden 5% drop in price after the release of US jobs data. The $74.4bn iShares Core MSCI World UCITS ETF (EUNL) briefly encountered a flash crash at 2.30pm CET on 5 April but quickly recovered as normal trading resumed. Despite this incident, other listings of the ETF across different exchanges remained stable. Following the crash, Deutsche Boerse conducted an investigation that did not reveal any signs of suspicious trading, market manipulation, or rule violations. Multiple stop orders were also triggered which exacerbated the decline. As a safeguard, trading was halted after a 5% volume limit was reached based on the previous night’s closing value.
Meanwhile, Cathie Wood’s Ark Invest has entered the European ETF market by launching three actively managed ETFs spanning innovation, genomics, and artificial intelligence. Anticipation of the launches sparked questions from fund selectors about whether Wood’s success would be replicated in Europe. After acquiring Rize ETF from AssetCo last September, ARK has launched a European roadshow to engage professional investors despite concerns about its volatile track record and ‘FOMO-stock’ reputation from retail investors. Despite past setbacks, Wood said the launches are not just a result of increased interest from European investors but a “declaration of our long-term commitment to Europe.”
In Q1, European ESG ETF inflows dropped significantly to €7.1bn from €13.8bn in the previous quarter, accounting for only 16% of the total €44.5bn inflows. This shift reflects a broader investor pivot towards US and global developed market exposures
