The biggest challenge for any new firm considering an entry into the ETF market is overcoming the regulatory hurdles placed between a product and customers. Few understand that difficulty as keenly as Eric R. Ervin, CEO and co-founder of San Diego, Calif.,-based ETF provider Reality Shares.

In the second part of a conversation with Money Management Executive, Ervin says after the launch of his firm, it took roughly three years to receive regulator approval for their product. In that time the former Morgan Stanley advisor was faced with some crucial decisions to make, from hiring decisions to budget allocations.

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