Roundhill Launches LYTE Photonics ETF as Optical Networking Market Eyes $154 Billion by 2028
Updated
Updated · CNBC · Aug 5
Roundhill Launches LYTE Photonics ETF as Optical Networking Market Eyes $154 Billion by 2028
3 articles · Updated · CNBC · Aug 5
Summary
Roundhill Investments will launch the AI-themed Roundhill Photonics and Optics ETF, ticker LYTE, on Thursday, extending its push into niche AI infrastructure after its DRAM fund drew more than $10 billion in 10 days.
The fund targets photonics and optics companies benefiting from AI data centers' shift from copper to light-based networking, which promises faster, more energy-efficient links over longer distances.
Goldman Sachs estimates the optical networking market will expand more than ninefold from $15 billion in 2026 to $154 billion in 2028, while Nvidia has committed at least $6.5 billion to photonics bets since March.
LYTE enters a market where Tema's rival LAZR fund has gathered only about $18 million since June 30, underscoring both investor interest in the theme and the difficulty of attracting assets amid AI-sector volatility.
Roundhill's prospectus warns the trade depends on continued AI, data-center and telecom expansion, and analysts say thematic ETFs can complement core holdings but should remain a limited slice of diversified portfolios.