Brickblock – Invest Your Cryptocurrency In ETFs

Brickblock has developed a reputation for innovation when it comes to adopting the best features of crypto to traditional investment methods. In doing so, they are opening up a range of investment opportunities to huge numbers of people who were excluded from them for a range of different reasons. It is fair to say that Brickblock are democratizing investment and are creating new templates for how we manage our money and our assets. Following on from their excellent real estate offering, Brickblock is about to bring a smart contract platform for Exchange Traded Funds (ETFs) online on the Ethereum network. While ETFs have been around for a while, Brickblock’s platform represents a massive leap forward in making them more accessible and cheaper for ordinary citizens on the street. In many cases, large losses on the stock market happen because an investor is overexposed to one stock or sector. ETFs are the perfect vehicle to achieve real diversification and Brickblock now going to put that level of security within everyone’s reach.

ETFs are funds that hold shares in a wide variety of companies, with the idea being that the ETF then mimics the movements of a particular index, such as the Dow Jones or FTSE. In theory, the ETF’s return should closely track that of the market. As the fund isn’t actively managed by a fund manager, the ETF has much lower fees as there is no manager to be paid and no fees for the frequent buying and selling of shares by the fund. It is made up of the same companies as the index it is trying to track and floats along with it. Research has shown that time and time again ETFs consistently outperform managed funds over the long term.

At present, buying ETFs has to be done through a broker, just like buying stocks. Adding in brokerage fees, minimum purchase amounts, onerous Know Your Customer (KYC) requirements and the length of time it takes to sell the funds can put many potential customers, particularly smaller investors, off buying into ETFs. Brickblock has developed an exceptional platform that takes all the benefits of cryptocurrencies in general, and Ethereum in particular, and applied them to the whole lifecycle of investing in ETFs. Using Brickblock’s platform, trades and investments can be made in minutes rather than the standard 3 days settlement time. Investors receive Proof of Asset tokens which represent their legal entitlement to a share of the underlying asset. Like any token, PoAs are held securely on the Ethereum network, yet are still instantly available if the investor wants to liquidate them. Liquidity will be drastically improved as there will be an established secondary market for the PoA tokens, meaning it will always be possible to cash out at very short notice and receive a fair price. Brickblock will have the platform online in the second half of 2018 and, going by initial impressions, it is going to facilitate great returns for smart investors right from its launch.

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