Roundhill Launches U.S. First Generative AI ETF

Roundhill Investments has launched the Roundhill Generative AI & Technology ETF, also known as “$CHAT,” which is the first-ever U.S. exchange-traded fund explicitly focused on generative AI. The ETF aims to provide investors with exposure to companies developing generative AI and related technologies. Generative AI has the potential to reshape entire industries and is gaining mainstream attention due to the progress made by ChatGPT and the growing user base and public awareness of generative AI technologies.

According to Tim Maloney, Chief Investment Officer at Roundhill Investments, the growth and impact of generative AI, particularly ChatGPT, have been tremendous. He compares it to a technology advancement that hasn’t been seen in recent history. Corporate executives are increasingly discussing artificial intelligence in earnings transcripts and other presentations, surpassing the focus on cloud computing. This highlights the importance and interest in generative AI as the next big thing.

Goldman Sachs analysts estimate that AI as a whole could drive $7 trillion in economic growth over the next seven years by boosting productivity. Roundhill Investments sees the potential market for generative AI enterprise software at $120 billion. However, until now, there have been limited options for investors seeking exposure to this nascent sector.

The launch of the CHAT ETF indicates that generative AI is transitioning from a niche technology to the mainstream. It signifies a significant inflection point where generative AI is growing rapidly enough to warrant its own investment vehicle, with even more adoption and growth expected in the coming years. Generative AI has the potential to transform creative fields, business processes, and more, with the ability to shape economies and societies for decades to come.

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