Harley Bassman questions Simplify Asset Management’s governance in shareholder letter
The creator of the MOVE Index is raising pointed concerns about fee structures and 'Russian doll stacking' at the $13.6 billion ETF firm where he remains a major shareholder
Harley Bassman, the bond market veteran who created the widely tracked MOVE Index, has fired a public shot at Simplify Asset Management in a letter to shareholders. The letter, addressed ahead of Simplify’s first shareholder meeting scheduled for August 2026, raises pointed concerns about the firm’s governance, fee practices, and what Bassman describes as an opaque fund-of-funds structure.
Simplify manages roughly $13.6 billion across 42 ETFs. About 38% of those assets originate from other Simplify products, a nesting arrangement that Bassman calls “Russian doll stacking.”
The nesting problem
At the center of Bassman’s critique is a structural issue that sounds arcane but has real consequences for investors. Simplify’s ETFs hold positions in other Simplify ETFs, sometimes in ways that Bassman argues are inconsistent with the funds’ stated strategies.
One product in particular stands out. The SBIL fund holds approximately $4.8 billion in assets sourced entirely from other Simplify products. When more than a third of a firm’s total asset base comes from internal cross-holdings, the fee implications compound quickly. Each layer of the structure can carry its own management fee, meaning investors may be paying multiple times for overlapping exposure.
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A messy breakup
The shareholder letter didn’t arrive in a vacuum. Bassman joined Simplify in February 2021 as a Managing Partner, bringing decades of derivatives expertise and his reputation as the “Convexity Maven,” a nickname earned through years of influential market commentary on options and volatility.
That relationship unraveled in November 2025, when Bassman was removed as portfolio manager from several funds, including the $1.4 billion MTBA. According to Bassman, his removal came after he raised concerns about revenue-sharing conflicts within the firm. Simplify, led by CEO Paul Kim, has characterized Bassman’s claims as a one-sided account from a former employee with an axe to grind.
The dispute has also moved into legal territory. Bassman is pursuing compensation claims through arbitration, originally filed for approximately $5 million, tied to revenue-sharing agreements he says the firm failed to honor.