Differences between traditional ETFs and MatrixETF

You must have been hearing about MatrixETF. If not, you have now. Are you wondering what is an ETF, what is MatrixETF? And probably how it differs from centralized or traditional ETFs that you’re used to? Well, I’m here to answer all that!

What is an ETF?

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies. The development of ETF has come a long way since the first American Exchange traded fund was launched in 1993.

Cryptocurrency and the blockchain industry have been around for a while now but ETFs are just beginning to shine with the rise of DeFi. A lot of investors are gradually turning to the blockchain industry. The cryptocurrency market has transitted from the spot trading and mining stage to the DeFi + Farming stage, and the crypto ETF has come out.

However, you notice that the blockchain industry might not be so friendly with new users but with ETF index operations, they have an opportunity to invest without being experts in the industry.

What is traditional ETF?

Traditional ETF is an asset which allows users to track stocks, sectors, commodities and indexes etc. Users can purchase shares in trade on stock exchanges. The prices will change like stocks regularly through the course of a trading day. ETF allows users to gain income from a basket of stocks rather than trading for individual stocks.

What is MatrixETF?

By now you must have gotten the fact that MatrixETF is a decentralised ETF. It is the next generation of decentralised ETF, cross chain enabled. Decentralised ETF regards the alternative category of digital currency assets which enable trading, loans, interest accounts and so on. The underlying technology is the smart contract instead of legacy institute on blockchain. The aim of MatrixETF is to establish a decentralized, automated, personalized and diversified ETF portfolio to lower the bar of the cryptocurrency market for ordinary investors, and help them obtain diversified strategic returns through more convenient operation process and more efficient portfolio allocation, so as to achieve long-term and stable wealth growth.

So how is MatrixETF different from the traditional ETFs

  • The core technology in MatrixETF is decentralised blockchain compared to the centralized one in traditional ETFs.
  • The assets in MatrixETF come in form of tokens whereas for traditional ETFs, assets come in form of stocks, bonds, cash.
  • Presentation for MatrixETF is a basket of tokens opposed to a basket of stocks for traditional ETFs.
  • You can earn extra income by farming, vault with MatrixETF compared to the traditional ETFs where you don’t get to earn any extra income.

Visit the website to learn more! https://www.matrixetf.finance/

Join MatrixETF today!




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Komobong Silas

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