This question keeps popping up in the Defi community, here is a detailed explanation of their differences and similarities(if any).
N/B: I refer to any ETF different from MatrixETF as a traditional ETF.
The introduction of crypto networks and decentralized finance provides possibilities for improving the operation mode of the financial system, which can eliminate the geographical limitations of the traditional financial system to the greatest extent and seek permission. However, we must admit that the whole cryptocurrency market is still in a relatively primary stage, and DeFi finance is not suitable for everyone.
An ETF allows people to invest in something without having to purchase it, much like buying shares in a company.
It is a type of security that tracks an index, sector, commodity, or another asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. Also, An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.
They allow people to purchase a slice of a diversified portfolio, rather than a single asset.
What is a Traditional ETF?
Traditional ETF is an asset that allows users to track stocks, sectors, commodities, indexes, etc. Users can purchase shares in a trade on stock exchanges. The prices will change like stocks regularly through the course of a trading day. What we mentioned above, the feature of an ETF allows users to gain income from a basket of concept stocks rather than trading for r individual stock.
Decentralized Finance(DeFi)
DeFi consists of applications and peer-to-peer protocols developed on decentralized blockchain networks that require no access rights for easy lending, borrowing, or trading of financial tools. Most DeFi applications today are built using the Ethereum network, but many alternative public networks are emerging that deliver superior speed, scalability, security, and lower costs.
What is MatrixETF?
MatrixETF is a DeFi ETF platform, DeFi 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 the legacy institute on the blockchain, meanwhile, the growth and activity of DeFi in the market are incredible. DeFi ETF is not only a concept ETF product of decentralized finance but also with smart contracts on blockchain by automated market maker system, In addition, users can mint/redeem it for gaining more income tendential faster operation.
Stay in touch with MatrixETF news and updates through the following channels;
♦️ website: https://www.matrixetf.finance/
♦️Twitter: https://twitter.com/MatrixETF
♦️Medium: https://matrixetf.medium.com/
♦️ Telegram group: https://t.me/MatrixETF
♦️ Telegram channel: https://t.me/MatrixETFOfficial
