Vladimir Kokorin on the ETF Revolution Transforming European Markets

Democratic digital investment platforms as the foundation of a new financial ecosystem

By the end of 2024, global ETF assets grew by 30% compared to the previous year, reaching nearly $15 trillion. This unprecedented surge has also left a significant mark on the European market.
The rapid growth of the ETF market is taking place amidst major structural changes in the financial sector, including the digitalization of investment platforms and the increasing demand for transparent and efficient investment tools. Traditional mutual funds, burdened by high fees and strict regulations, are gradually being replaced by more flexible and cost-effective ETFs.
“We are witnessing a fundamental shift in the investment paradigm in Europe,” notes Vladimir Kokorin, a seasoned expert who has successfully developed his consulting business in the UK since 2011. “ETFs are not just an alternative to traditional investment products but also a catalyst for large-scale democratization of financial markets for individuals. This democratization will define the future of European investments for decades to come.”

Expansion Across Europe

The impressive success of ETFs in Germany served as a powerful driver of Europe-wide investment transformation. According to Vladimir Kokorin, one of the catalysts for these changes was the 2020 pandemic, although the groundwork for them was laid much earlier. Germany’s traditional savings culture, combined with the European Central Bank’s long-standing low-interest-rate policy, created ideal conditions for change. The emergence of user-friendly digital platforms was the final piece of the puzzle, making ETF investments accessible to everyday investors.
“The success of ETFs in Germany has demonstrated how to effectively address the issues of high fees and insufficient diversification by creating a comprehensive digital solution tailored to modern investors’ needs,’” states Vladimir Kokorin, founder of the UK-based investment firm BCCM Group. “This experience has become a benchmark for other European markets.”
Indeed, the ETF revolution that began in Germany has quickly spread across the European continent, creating a domino effect. Data from ExtraETF reveals a striking trend: aside from Germany, the number of active ETF savings plans in continental Europe has more than doubled, reaching 1.3 million by the end of 2024, compared to just 500,000 in 2023.
“Collaborating with financial institutions across Europe, I’ve observed a rapidly growing appetite for ETF products in both the UK and EU countries,” shares Vladimir Kokorin.
Italy has emerged as a particularly dynamic market, where, according to BlackRock analysts, more and more players are launching their offerings. The UK, traditionally a stronghold of mutual funds, is also undergoing significant changes. Even smaller European countries, such as Ireland and Luxembourg, are making notable strides in this sector, positioning themselves as continental ETF hubs.

Digital Platforms and the New Generation of Investors

The democratization of investing through ETFs is closely linked to the rise of digital investment platforms, especially among younger investors. Recent research shows that among the growing number of ETF owners, the 18–34 age group leads the way, with over 80% of them accessing these products through digital platforms.
This is not merely a shift in investment tools—it is a fundamental transformation in how Europeans approach wealth creation. Digital platforms have removed traditional barriers, enabling individuals to start investing with modest amounts through regular monthly contributions. Anyone can now build a diversified portfolio with just a few dozen euros, gaining access to global markets and sophisticated strategies.
This shift is not only changing investment methods but also reshaping the investors themselves. As Timo Toenges, Head of Digital Wealth iShares EMEA at BlackRock, aptly pointed out in an interview, retail clients previously lacked adequate service levels, but this has now changed. Consequently, growth in the ETF sector is also driven by those who previously preferred conservative savings instruments.
This has led to the emergence of a new class of investors who may never have engaged with financial markets through traditional channels. “The democratization we are witnessing thanks to digital platforms is revolutionary,” notes Vladimir Kokorin. “Compared to the past, financial innovations are now being implemented at lightning speed. I resonate strongly with experts who say these new platforms are literally reshaping the DNA of European investing.”

The Rise of Active ETFs

Global asset management giants are eager to capitalize on the current momentum, focusing particularly on the active ETF segment. Industry leaders like JPMorgan Asset Management, Fidelity International, and Janus Henderson are not just showing interest—they are diving headfirst, planning to launch numerous new active ETF products this year.
Unlike their passive counterparts, which merely track indices, active ETFs offer much greater flexibility. This significantly enhances the ability to outperform the market by selecting specific securities and strategically adjusting portfolios. JPMorgan’s success in this area, managing $170 billion in active ETFs globally and leading the European market, underscores the growing demand for these products.
“The active ETF segment represents one of the most promising innovations in European asset management,” says investor Vladimir Kokorin. “We see strong interest from institutional investors who recognize that these products combine the best of both worlds: the expertise of active management with the efficiency of ETFs.”

A New Era for European Investments

“It is clear that ETFs are not just another investment trend but rather a cornerstone of a new financial ecosystem,” notes Vladimir Kokorin. What began as a localized phenomenon has evolved into a global movement, opening the doors to professional capital management for millions of new investors.
Traditional asset managers are not merely acknowledging this reality—they are actively transforming their business models. Major European banks, such as Deutsche Bank and BNP Paribas, are already launching their own ETF platforms and integrating them into their digital services, demonstrating the inevitability of these changes.
“Looking ahead, it’s safe to predict that an increasing share of all retail investments in Europe will be made through ETFs,” concludes venture investor Vladimir Kokorin. “The combination of technological progress and shifting investor preferences makes this transformation not just likely but inevitable.”

*Vladimir Kokorin is a Spanish venture investor, founder of the UK consulting firm BCCM Group, and co-owner of the digital corporate travel platform TUMODO.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes