Tennys Sandgren of the United States returns a ball during the singles match against Christopher Eubanks of the United States during the DraftKings All-American Team Cup on July 4, 2020 in Atlanta, Georgia.
Shares of companies in the online sports betting and digital gambling space have rallied amid the coronavirus pandemic and one investment advisor has already taken advantage of the trend.
Roundhill Investments, a small firm with offices in New York and San Francisco, launched the Roundhill Sports Betting and iGaming exchange-traded fund (BETZ) on June 4. Since then, the ETF has seen its assets under management balloon to nearly $100 million. This quarter alone, BETZ is up more than 14% and has risen more than 7% since launching.
The ETF's hot start out of the gates comes as stocks such as DraftKings, Churchill Downs and London-listed Flutter Entertainment have all surged this year even as the coronavirus forced numerous sporting events to be canceled or postponed.
CNBC Pro spoke with Tim Maloney, co-founder and CIO of Roundhill Investments, who broke down the fund and the strategy behind it.