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The world’s first exchange-traded fund dedicated to decentralized. Finance networks are due to launch in Brazil next month. Deepening the $10tn ETF industry’s foray into virtual assets. The move will allow investors to track. A basket of projects betting on decentralized finance. However Reading and lending networks. Whose standards are automated and often decided by consensus.
DeFi Index ETF
The fund is called the Hashdex DeFi Index ETF. This marks a departure for an industry that. Hitherto has encompassed funds investing. In listed crypto businesses, or popular cryptocurrencies such as bitcoin and ether — where permitted by regulators. It will list on the Brazilian stock exchange on February 17.
By offering the first DeFi ETF in the world, we are providing. World’s soonerDeFi ETF to be found in Brazil. Our global investors with the ability to play. A part of the next evolution of the crypto ecosystem. Said Marcelo Sampaio, chief executive of Hashdex. defi ETF price a Brazilian crypto asset manager. Decentralized finance aims to do away with a centralized intermediary — like.
A bank or an exchange — to provide financial services such as lending and trading through an algorithm. Supporters say it offers greater transparency. Blok ETF’s resistance to censorship and faster settlement times than traditional finance. It was one of the fastest-growing areas of the crypto asset industry.
Said Marcelo Sampaio.
Although interest has cooled in the past two months as crypto prices have fallen. Decentralized applications (Dapps) hold about $107bn of customers’ funds, down from a November peak of $180bn, according to data from DappRadar. The Hashdex DeFi Index ETF will invest in the tokens developed by Dapps, networks built on blockchain technology and use preprogrammed algorithms to execute cryptocurrency trades.
Dapp tokens can be traded on other crypto markets but also allow owners to vote on governance proposals and developments for the network. The ETF will invest in eight Dapps, as well as related service providers such as oracles, which gather data on asset prices from the outside world and send it to a blockchain or distributed ledger. The Dapps it has targeted include Uniswap, used to exchange cryptocurrencies and tokens; lender Aave; Polygon, a service designed to speed up transactions on blockchains; and Chainlink, an oracle.
The ETF will track the CF DeFi Composite Index-Brazil. coin desk defi index The launch highlights a divide between global financial centres that have thus far permitted little innovation in the growing field of digital assets and relatively laissez-faire secondary financial hubs. While Canada, Sweden, and Germany.
ETPs, and Australia and India
Switzerland, Jersey and Liechtenstein all boast spot cryptocurrency ETPs, and Australia and India are poised to join them. US regulators have only approved futures-based versions, while those in the UK, Hong Kong and Singapore have not even permitted these vehicles. grayscale defi ETF This strikes me as an artifact of a race to the bottom concerning crypto asset regulation in general.
The regulation of registered funds that invest in such assets more generally,” Ben Johnson, director of global ETF research at Morningstar, said of the Hashdex fund. defi index fund A rival issuer described the ETF as “cool”, but said it was “more iterative, rather than highly innovative”, building on the network of the crypto basket.
Exchange-traded products are already available. Bruno Sousa, head of global operations at. Hashdex, said Dapp tokens are “structurally very different” from cryptocurrencies. grayscale defi fund ticker Many use the Ethereum blockchain. which can hold financial assets and allows programmers to code functions for buying and selling into smart contracts.
These are similar to start-ups. They have solutions for given sections of the market. If they do well they will grow, if they don’t they will diminish and the token will dwindle in value. Sousa said. Formed in 2018, Hashdex at present has one ETF in Brazil. crypto ETF The world attracts investors ranging from retail to macro hedge funds. It also runs a similar US-based private fund in conjunction with Victory Capital.