Paul Weisbruch

Most investors never think about what happens between clicking "buy" and owning shares of an ETF. Paul Weisbruch does , it's his entire world. As a leader at GTS, one of the largest market-making firms on the New York Stock Exchange, Paul oversees lead market-making commitments for 341 U.S.-listed ETFs, with secondary market-making in another 40, and trading activity across well over 3,200 ETFs. His perspective on what makes ETF launches succeed or fail is shaped by two decades in the trenches of the ETF ecosystem.

From Specialist Posts to 3,300 ETFs

Paul's ETF career started almost by accident in the early 2000s at Susquehanna, where he moved from the Nasdaq OTC desk to specialist posts for SPY and DIA on the Philadelphia Stock Exchange. "At that point in time, it was only a handful of ETFs, spreads were rather wide, volumes were certainly relatively low," he recalls. "No one was talking about 3,300 ETFs and mutual funds converting to ETFs." There was no vision of ETF model portfolios, ETF strategists, or fund-of-fund structures , those concepts simply didn't exist yet.

He then spent time at Pacer ETFs during the 2008-2009 timeframe as a startup issuer , "I saw the merits of being a startup, the challenges of being a startup" , before joining GTS in 2019 following their acquisition of Cantor Fitzgerald's market-making group. That rare dual perspective on both the issuer and market-making sides of the business informs how GTS works with fund companies today.

Why Market Making Matters for Small Funds

For new and smaller ETFs, the quality of market-making can make or break advisor adoption. Paul explains the dynamic bluntly: advisors look at spread, volume, and fund age. "If the optics of the fund going into a trade are positive , tight spread, some level of activity, some level of market depth , chances of that advisor making a sizable allocation are higher."

This is where the NYSE's Designated Market Maker (DMM) model comes in. Unlike purely electronic markets, the DMM model adds a human overlay on top of algorithmic quoting. "You have a human overlay on top of an auto-quote or algorithmic-based quote. Generally there's more market depth, tighter spreads, the optics of the fund tend to be very positive, especially for newcomers." Brad confirms this from personal experience , the floor presence has been a meaningful advantage for smaller issuers like THOR.

The ETF Space: 5,000 Funds Coming

Paul sees the ETF universe continuing to expand, potentially reaching 5,000 products within three years. The growth isn't just from brand-new concepts , it's heavily driven by mutual fund conversions, SMA conversions, and existing strategies migrating into the ETF wrapper. "A lot of the new ETFs will be existing strategies that have converted from their current form into an ETF," he notes. The sophistication level is rising as established active managers bring proven track records into the space.

This expansion demands increasingly specialized market-making capabilities. Each fund has unique characteristics across asset classes that require tailored attention. "Understanding that certain asset classes and certain products are unique from fund to fund is probably core to that. And each needs a special level of attention and a special level of detail to be successful."

Real-World Trading Scenarios

What sets experienced market makers apart is handling the edge cases , a large order that's 10x or 20x the average daily volume in a thinly traded product. Those situations require human judgment alongside algorithmic capability. "These are the conversations about mechanics, optics, and real-life scenarios, such as buying 10x, 20x the average daily volume in a product," Paul explains. The floor-based model gives GTS the ability to manage these situations with nuance that purely electronic systems can't replicate.

Paul also highlights the connection between market making and music , his primary hobby. He's a big proponent of David Schulhof's MUSQ music ETF and TUNE, both of which GTS serves as lead market maker. He even connected with Schulhof at Future Proof, where live music was a central feature of the conference. It's a reminder that in the ETF industry, personal connections and shared interests often drive business relationships as much as quantitative capabilities.

Paul's dual background , startup issuer turned market maker , gives him a perspective that pure trading firms lack. He understands what fund companies need to succeed, and what advisors need to see before they'll commit capital. In an industry racing toward 5,000 products, that kind of practical expertise is increasingly valuable for anyone launching a new ETF into a crowded marketplace.

One of Paul's most actionable insights is the importance of day-one asset gathering. The primary driver of long-term success, in his view, is the issuer's ability to bring capital to the fund within the first 30 days of launch. "If an issuer is going to come to market with high confidence they can raise $50 million in 30 days, that changes everything." Getting to $50-100 million quickly allows you to approach retail platforms with confidence, reduces the chicken-and-egg problem of volume, and covers the fixed costs that make sub-scale funds unsustainable. Waiting for organic discovery , hoping someone else buys first , is a dice roll that rarely pays off.

Key Takeaways

• Most investors never think about what happens between clicking "buy" and owning shares of an ETF.
• As a leader at GTS, one of the largest market-making firms on the New York Stock Exchange, Paul oversees lead market-making commitments for 341 U.S.-listed ETFs, with secondary market-making in another 40, and trading activity across well over 3,200 ETFs.
• His perspective on what makes ETF launches succeed or fail is shaped by two decades in the trenches of the ETF ecosystem.
• Paul's ETF career started almost by accident in the early 2000s at Susquehanna, where he moved from the Nasdaq OTC desk to specialist posts for SPY and DIA on the Philadelphia Stock Exchange.

Listen to the full conversation on Spotify, Apple Podcasts, or YouTube.