Blockchain-Traded Funds
Exchange-Traded Funds put on a private blockchain and sold by the Robo-advisor
A BTF is the next generation of Exchange-Traded Fund (ETF)
put on a blockchain and to be sold for a crypto currency as well as fiat currencies.
An ETF trades like a common stock and tracks a basket of assets (stocks, commodities) through buying those assets physically or by buying derivatives.
As of August 2023, ETF funds hold ~$10.9 trn of assets and show 10yr CAGR of ~16.3%
88% of ETF assets are in USA+EU, with only 12% in developing countries.
iZiing have prepared the BTF concept to enter those untapped segments of the ETF market by:
1) Robo-advisors – natural extension of BTF concept – will
construct personal investment portfolios using the best investment practices.
2) Storing accounts on private iZiing Blockchain with many node
holders shall embed trust in the records of ownership of BTFs.
Given strength of incumbents (notably, big western banks and asset managers ) in their domestic markets that will fiercely defend their multi-billion business, we see good opportunity to start building this infrastructure outside developed markets and focus distribution on emerging markets (BRICS and etc.).
The pilot project is to launch first ETF 2.0 in 2017 and quickly extend the range of products to 15-20 financial instruments
(major stock / bond / commodity indexes) thereafter covering the major part of investment universe.
In 2018, offer direct B2C and indirect B2B2C robo-advisory solutions — the latter to businesses with large client base and low margin (e.g. mobile operators).
