The decentralized exchange-traded fund (D-ETF) is an ERC-20 based token reinventing the traditional ETF landscape by giving investors unlimited tradeability and no intermediaries, while giving token holders the option to participate in the investment allocations through a self-operating decentralized autonomous organization, or DAO.
Traditional finance has battled for several years to get the first Bitcoin (BTC) ETF in the United States, and finally it became a reality on October 19, 2021. New investors can now finally get exposure to Bitcoin futures. This is overall a step towards broad acceptance of cryptocurrencies, but ultimately the Bitcoin futures ETF is a win for Wall Street and not for decentralization.
The decentralization of the financial industry is inevitable. The intermediaries are becoming more redundant and centralized ETFs are no exception.
D-ETF is aiming to solve all the broken and outdated defects of a traditional ETF by giving investors unlimited trading hours and replacing the expensive intermediaries with a self-operating DAO. This means token holders are collectively making investment decisions through voting, sending the traditional hedge fund managers on early retirement.
The D-ETF also removes all Know Your Customer (KYC) and capital requirements and instead of paying fees to redundant intermediaries, investors are paying a 3% community fee which is evenly distributed through existing token holders and to the intrinsic value. Enriching the token holders with a long-term investment perspective.
Overall, the D-ETF intends to provide a great foundation for both engaging and passive investors who want exposure to multiple assets with only one token. For a crypto investor to have exposure to 10 to 20 different tokens, one would most likely need to use different exchanges or a decentralized exchange (DEX), where fees can eat up the intended investment amount. By purchasing D-ETF, investors are only paying one fee to have multiple token exposures.
The D-ETF is currently undergoing private pre-sale rounds, making strategic partnerships and is aiming to officially launch the public token sale sometime in the mid-end of November at $0.5 per token, giving the project a market valuation of $21.25 million.
