Diversification is key to good investment portfolio and that is just as true for cryptocurrencies as it is for traditional investments. Crypto trading is serious business now and needs to be treated as such. During the wild rise and fall of bitcoin and other coins over the last year, one group has been working quietly in the background to develop a product that will ensure steady, sustainable growth over the long term for crypto investors. Brickblock is set to launch the first platform that will allow crypto enthusiasts to invest in a properly diversified portfolio that will be benchmarked against a fixed index. While talk of hodling, Lambos and going to the moon was fun, the crypto sphere has matured beyond wild speculation in one or two coins and hoping for astronomical returns. Brickblock is going to provide just the right solution at just the right time.
Coin Managed Funds (CMFs) are just like their fiat equivalents, the actively managed fund. A fund manager will actively trade a portfolio of carefully selected coins, using both fundamental and technical analysis. The objective will be to maximize investor return over and above what the market does. The fund managers themselves will be the subject of careful auditing and oversight, just like any Wall Street fund, to ensure that investor’s funds are secure and not subject to excessive risk.
Coin Traded Funds (CTFs) are similar to Exchange Traded Funds (ETFs). They will track a specified index, for example, the Top 10 Cryptocurrencies by Market Cap. The fund’s objective will be to match the market return of its target index. As passively managed funds, there will be no frequent trading of coins and as a result much less trading fees, which leads to a healthy and more consistent return.
As the maximum number of major coins like BTC and ETH is capped, they are deflationary and their price will increase over time. Despite last year’s bubble, there is still huge potential for the price of most coins and what is needed is a product that can tap into that and deliver consistent returns. While exponential short-term growth is impressive, it is steady, reliable returns that build real wealth. Brickblock have designed exactly the right products in these two funds to deliver just that.
Brickblock will facilitate buying shares in both these funds through its Proof-of-Asset tokens. These tokens are already in use in their real estate operation and will also be used in its ETF platform. Brickblock will use smart contracts to drive its platform, giving it every benefit of the Ethereum network for its customers, while at the same time employing the best concepts from traditional investment banking in the funds. The PoA is a fully recognized and robust legal entitlement to their underlying asset, giving investors excellent peace of mind. Unlike many firms who have recently completed ICOs, Brickblock is a live and operating business. They have filed for regulatory approval in the European Union and have successfully tokenized real estate investments, with an enormous confidence in their ability to apply their protocol to other types of assets.
Find out more on Brickblock website: https://www.brickblock.io/