Cryptocurrency Blockchain ETF Systems
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. The actual investment vehicle structure (such as a corporation or investment trust) will vary by country, and within one country there can be multiple structures that co-exist. Shareholders do not directly own or have any direct claim to the underlying investments in the fund; rather they indirectly own these assets.
ETF shareholders are entitled to a proportion of the profits, such as earned interest or dividends paid, and they may get a residual value in case the fund is liquidated. The ownership of the fund can easily be bought, sold or transferred in much the same way as shares of stock, since ETF shares are traded on public stock exchanges.
Kryptoin is the first ETF platform designed to create ETF tokens comprised of currencies in desired proportions within a Creation Unit (aka. the basket). This Creation Unit Compositor is the heart of the ETF and can be programmed to include any blockchain tokens or coins in desired proportions. Create an index from the basket with the Index Compositor and calculate the coins Net Asset Value (NAV). Why buy multiple currencies when you can buy one that is representative of them all.
Kryptoin ETF Systems, an innovative blockchain fintech company with a vision to bring Decentralized ETF Smart Contract platform to retail and institutional investors, has obtained a Provisional Patent from the US Patent Trademark Office (USPTO) effective, April 27, 2018.
The patent: “Kryptoin Exchange Traded Blockchain ETF Token System and Method to Facilitate the Creation and Redemption of a Cryptocurrency Portfolio” (62/663,941), outlines the development of a system and method to exchange trade cryptocurrencies and tokens and settling it on a distributed ledger. Catering to both the retail and the commercial investor, the Kryptoin ETF system is mainly designed to fulfill the needs of the latter.
True ETF Modelling and Performance
Kryptoin’s system involves an ETF token that is integrated with participating exchanges. The token acts and functions in the same way a conventional ETF does and provides the maximum amount of cryptocurrency exposure with minimal risk along with great liquidity. These tokens and assets can be exchanged and traded at a Kryptoin Trading Desk or liquidated on a digital exchange. Trading the ETF token on an exchange enables it – just like a true ETF – to act independently from the actual basket of underlying assets while still being tethered to it by the creation and redemption mechanism.
Kryptoin’s system distinguishes itself from other closed end funds (CEF) and Index funds with their patented creation and redemption exchange traded process. This key component allows for the integration of many groundbreaking applications.
The Megawallet application allows different blockchain nodes to be integrated into the system. Kryptoin intends to integrate hundreds of blockchain nodes to best represent the assets in the market with the launch of new indices and ETFs in the upcoming months.
Other capabilities include:
- Secure Assets Under Management (AUM) for Issuers
- Trading Desk to capitalize on Discounts and Premiums on NAV
- Retail exchange and quotation system
The Trading Desk is an essential part of the Kryptoin ecosystem providing both liquidity and the necessary hedging tools in order to function as a proper ETF desk. The trading desk is currently integrated with two very prominent cryptocurrency exchanges: Bittrex and Bitfinex; more promising is in how Kryptoin is planning to integrate with most major exchanges in the future through their respective API protocols. These open source protocols allow for instantaneous price evaluation and trade capabilities between other exchanges, which open up the potential for arbitrage between various exchanges.
Blockchain Smart Contract
The Kryptoin Blockchain 10 ETF Token is an ERC20 Ethereum token. However, the company is exploring faster and more scalable blockchains to represent their tokens.
Kryptoin strives to be a catalyst that helps merge the traditional and digital currency markets. Kryptoin has full intentions in becoming the modern benchmark authority for the Cryptocurrency Market. It intends to compile and make sense of most of the new technologies and cryptocurrencies being offered. Kryptoin will extensively, cohesively, and consistently compile, create, and maintain indices to accurately represent all the various aspects of the cryptocurrency market.
Kryptoin has had a head start having gained the help of current ETF Indice founders, leaders, advisors and analysts from the industry.
Upcoming Initial Token Offering
With growing interest from conventional financial institutions and with fund managers waiting on the sidelines for a more mature cryptocurrency market to enter into, this type of investment vehicle and benchmarking system will be particularly attractive to such players. Having obtained a provisional patent, Kryptoin ETF Systems is now poised to become a well-positioned market leader in the cryptocurrency market.
For more information please visit links:
Website : https://kryptoin.io/
Whitepaper : https://kryptoin.io/whitepaper
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