Amplify ETF developed an exchange-traded fund made up of peer-to-peer lending and equity crowdfunding portals. An exchange-traded fund is a collection of stocks packaged together as a security.

In Amplify’s case, the firm seeks to create an ETF that acts as an index of two key crowd finance sectors including peer-to-peer lending and equity crowdfunding.  

The firm outlines the business segments that the firm will invest in:  

  1. Peer-peer lending and equity crowdfunding portals.
  2. Providers of software and technology solutions to both industry segments.  
  3. Social networking platforms.
  4. Financial institutions with dedicated peer-to-peer lending and equity crowdfunding platforms.

In the firm’s prospectus, categories are further defined. Social network platforms are specific to equity finance industries: “social network platforms that enable individuals to lend, borrow money, or borrow without a bank serving as an intermediary such as mobile banking, cash advances, remittances, and other forms of credit.”

The second category is a growing cottage industry of crowd finance. A robust software ecosystem now supports issuers, firms, and investors with web-based software to build a portal, or apply verification and reporting tools.

Amplify ETF has $750 million invested across ETF’s for which it is an advisor or sub-advisor. The firm announced an ETF incubator, which allows registered investment professionals, asset managers, or index providers to incubate Exchange traded funds. Look forward similar emergent and crowd-powered finance models to support crowd finance in the future.


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