Kryptoin: Integrating Blockchain
An exchange traded fund (ETF) refers to an investment fund traded on stock exchanges, much like stocks.
An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.
Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features. By 2013, ETFs had become the most popular type of exchange-traded product.
More than US$2 trillion were invested in ETFs in the United States between when they were introduced in 1993 and 2015. By the end of 2015, ETFs offered 1,800 different products, covering almost every conceivable market sector, niche and trading strategy.
Drawbacks of ETFs
When it comes to buying and having ETFs, there are some challenges that come along with that:
An issue of cost of trading is a fundamental drawback of ETF products although on the average, they have the lowest all-in expense ratios when compared to mutual funds. The problem lies in determining the total cost of ownership, because investors would have to take into cognizance charges on sales, commissions and other costs associated with trading.
Another problem is tracking error, which occurs when an ETF is unable to correctly imitate returns of its index and finally, the challenge of counterparty risk.
Here are the main features of the Kryptoin ETF as a unique ecosystem: the ability to put together a creation structure, ability to construct an index, a trading desk, it also has a five user levels with distinct functions and capabilities and finally a token smart contract integrator.
The solution with Kryptoin
This is a cryptocurrency Blockchain ETF system upon which ETF tokens can be designed to monitor and cover indices formulated to typify the changing digital currency. The Kryptoin platform is doing the unprecedented in the industry having the most efficient and decentralized system with those features.
The platform’s ETF token is designed for the purpose of reducing the complexities and helps reduce the risks naturally identified with financial instruments and the crypto market in particular.
The difference here comes as a result of the integration of blockchain and smart contract features which will enhance the capabilities of the system above what is currently found in the industry.
The Kryptoin ETF system is about creating an ecosystem that will have a digital token portraying the estimation of the worth of a combination of cryptocurrencies that are of the same set of blockchain nodes coordinated or linked to their application.
The reason for making a link to blockchain is because of the risks identified. The tokens here will act like a conventional ETF available on a stock exchange.
The ecosystem does have an edge over other similar projects in that it has a temporary patent on their ETF at the United States patent office, the first to be launched being integrated and automated with the exchanges – replacing human labor. There many other competitive advantages that the ecosystem has.