Hundreds of active mutual funds remain hesitant to convert to ETFs despite industry momentum, facing a potential $1.4 billion revenue hit due to lower fee structures associated with active ETFs. This reluctance stems from the immediate impact on profitability as ETFs typically charge less than traditional mutual fund vehicles. Industry analysis suggests the revenue loss may be offset by subsequent asset inflows over time. The transition dynamic reflects broader market shifts where self-cannibalization becomes necessary to maintain competitiveness against external disruption in the asset management sector.