Gabe Plotkin to Launch Snowball ETF via Tax-Efficient Asset Conversion

Gabe Plotkin, the co-chairman of the Charlotte Hornets and a former hedge fund manager, is planning to convert a significant portion of his personal asset holdings into an exchange-traded fund. The vehicle, known as the Snowball ETF, will be established using a process known as a 351 conversion. This specific regulatory mechanism allows investors to transfer an existing portfolio of securities into an ETF structure. The practice has seen a surge in popularity across Wall Street, as it provides high-net-worth individuals with a strategic pathway to defer capital gains taxes that would otherwise be triggered by a direct sale of assets. Plotkin's move comes after a period of significant professional transition; he previously shuttered his investment firm following a bruising encounter with the volatility of meme-stock traders. According to sources familiar with the matter, the filing for the Snowball ETF was initially submitted in December. While the creation of the fund is a personal financial maneuver, it underscores a broader trend in wealth management where ETF structures are increasingly leveraged for tax optimization rather than traditional retail investment products.