Securitization: Creating Bankable Assets with ETPs

Authored by FlexFunds
securitization bankables assets with etps
securitization bankables assets with etps
  • Modern securitization and ETPs transform various asset types, including real estate and alternative assets, into bankable assets. These are assets distributed across global private banking platforms.
  • Asset managers, financial advisors, and institutional investors who want faster, cost-effective access to international markets through custom investment vehicles can benefit from transforming ETPs into bankable assets. 
  • FlexFunds simplifies the process of setting up investment vehicles, transforming assets into bankable assets. Contact us today to learn how to start structuring your investments.

Modern securitization and repackaging strategies are useful means of accessing multiple private banking channels. This helps to transform various asset types into bankable assets, which can be distributed across private banking platforms.

Through securitization, both liquid and illiquid assets, like real estate, for example, can be converted into securities. 

When combined with exchange-traded products (ETPs), this process allows for bankable assets.

Investment Strategies for Global Distribution 

The conversion process is complex; however, FlexFunds specializes in simplifying this transformation.

As a result, we are leaders in providing investment vehicle structuring and administration. We create independent, fund-like vehicles called Flex

Specifically, it’s designed for strategy management and global distribution to non-U.S. investors. 

Moreover, these exchange-listed products give access to private banking platforms worldwide.

What Types of Assets Can be Converted into Bankable Assets?

FlexFunds’ investment vehicles are highly versatile. It’s not limited to a specific asset type. Accommodating a broad spectrum of assets, including liquid, illiquid, listed, and alternative investments.

Because private banks treat these transactions as debt, FlexFunds’ ETPs can access their distribution platforms faster. Consequently, this simplified process provides a major advantage over traditional funds, which, in contrast, usually can suffer from long delays due to complex verification and lengthy due diligence requirements.

What Is the Conversion Process?

Converting assets into bankable assets through an ETP is straightforward for our clients. Specifically, FlexFunds takes care of the ETP issuance process, corporate administration services, and fund accounting, making the ETP ready within six to eight weeks. 

Then, once the entire process is completed, the advisor can market this product, which has brought together several assets, in a single investment vehicle. 

In just five simple steps, any given client can launch their ETP, facilitating access to investors in the global capital markets. 

5 Steps for Launching Your ETP

  1. Design the investment strategy of the ETP.
  2. Sign the Engagement Letter.
  3. Due Diligence.
  4. Creation of the ETP.
  5. Issuance of the ETP.

What Are ETPs and Where Are They Headed?

Exchange-traded products (ETPs) are investment vehicles that track the performance of underlying assets such as stocks, bonds, commodities, or indices

They are traded on public exchanges just like individual stocks. This means that their prices fluctuate throughout the trading day as per daily market activity.

ETPs vs. Traditional Investment Funds

What makes ETPs stand out compared to other investment funds is their transparency, liquidity, and lower fees compared to traditional actively managed mutual funds. Moreover, as ETPs typically follow a passive investment strategy, they have fewer management costs. Therefore, this structure has made ETPs appealing to institutional and retail investors.

Since the launch of the first exchange-traded fund (ETF) in the U.S., the SPDR S&P 500 ETF Trust (SPY) in 1993, the ETP market has grown quickly. ETPs have become much more recognized as bankable assets. 

Did You Know?

BlackRock projects active ETF assets will hit $4 trillion by 2030.ETFGI (an independent ETF and ETP research and advisory firm) claims that U.S. ETF and ETP assets reached a record high of $11.54 trillion at the end of June 2025, surpassing the previous peak of $11.04 trillion from May.

securitization creating bankable assests etps

Bankable Asset Trends for the Upcoming Year

ETPs are being transformed by technological innovation and custom-built investment solutions. Essentially, forms of wealth that are not typically held in traditional financial accounts, like real estate, private equity, or digital assets.

According to Accenture’s 2025 report on asset management trends, the main focus for firms should be on creating custom investment products. These are usually built by private asset managers, providing custom strategies listed on exchanges. As a result, this makes it easier for investors to access specific market opportunities.

Meanwhile, the rise of AI and autonomous learning tools is allowing managers to get more insights from data and deliver better solutions to their clients. 

Key Takeaways for Bankable Assets 

  • Customization is vital: ETPs are converting into useful tools for custom investment strategies.
  • AI-powered tools are shaping fund design and performance analytics.
  • Bankable assets are expanding to include digital and alternative investments.
  • Budget-focused investors prefer clear, low-cost passive strategies, like ETFs.

For custom investment vehicles, FlexFunds offers the tools needed to quickly and efficiently provide innovative strategies to the market.

Contact FlexFunds today, and a dedicated member of our team will be pleased to help you. 

Sources:

  • https://www.marketwatch.com/story/why-blackrock-sees-active-etfs-more-than-quadrupling-to-4-trillion-by-2030-e56d53f6
  • https://etfgi.com/news/press-releases/2025/07/etfgi-reports-assets-invested-etfs-industry-united-states-reached-new
  • https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-154/accenture-future-of-asset-management-executive-summary.pdf
Disclaimer:

The purpose of content of the above article, blog, or post is only informational, and it is not intended to provide any sort of investment advice, as an offer of solicitation to buy, sell, or hold, or as recommendation, endorsement of any security, investment, fund and / or company. The content and information provided in the above article, blog, or post does not constitute financial, trading, or investment advice of any type. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer, or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise. Perform your own due diligence and consult a financial advisor prior to making any investment decision.

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FlexDual Portfolio Details

Dual Custody: Securitizes a strategy with listed assets in a Bank of New York & Interactive Brokers accounts

Applications

  • Bankability: Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds
  • Design a mixed investment strategy of fixed income, equities, and derivatives

Advantages

  • Trading and custody platform with available leverage
  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades

FlexRegulated Portfolio Details

Securitizes a strategy with listed assets in an Interactive Brokers account targeting institutional and retail investors

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Trading and custody platform with available leverage
  • European UCITs compliant
  • Market to institutional and retail investors
  • Actively managed by a Portfolio Manager
  • Market maker as part of the solution
  • Low value tickets
  • Cost efficient

FlexOpen Portfolio Details

Securitizes a strategy with listed assets in any custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Manage portfolios from any major custodian
  • Introducing Broker Dealers maximize revenue from own trading fees structure
  • AUM remain on the introducer broker agreement
  • Efficient subscription through Euroclear
  • Actively managed by the Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient

FlexPortfolio Details

Securitizes a strategy with listed assets in a Bank of New York or Interactive Broker custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds

Advantages

  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades
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Welcome to FlexFunds

We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

  1. Independent entities. FlexFunds ETP and FlexFunds Ltd. are not managers of the special purpose vehicles, collectively, responsible for the issuance of Notes under the Global Note Programs.
  2. Coordinated Activities. FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.
  3. Not Broker-Dealer or Investment Adviser. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

FlexFunds ETP may collect data about your computer or device, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes.

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Privacy Overview

Welcome to FlexFunds

We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

1. Independent entities.FlexFunds ETP and FlexFunds Ltd. are not managers of the special purpose vehicles, collectively, responsible for the issuance of Notes under the Global Note Programs.

2. Coordinated Activities.FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.

3. Not Broker-Dealer or Investment Adviser.Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

FlexFunds ETP may collect data about your computer or device, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes.