The idea is to create fonds or etfs for cryptocurrencies, so a buyer puts for example 500 usdc into a pool and this money is automatically taken and invested in 10 different cryptocurrencies. The investment pools can vary, for example you can have a pool for risky/medium/low risk gaming tokens, layer 1s, …
For normal people, that do not have enough time or knowledge it is difficult to invest in stock markets, so if they pick one stock and invest into it, the probability is quite high, that they lose a part from their investment. So most people invest in fonds or etfs, because it is much simpler and safer, you just have to know which risk you want to take and in which sector you want to invest. But why is it safer? Because you do have a diversified portfolio per definition and there is someone managing the fonds and checking if he has to change something to reduce risk or optimize profits. Crypto is much more volatile than the stock market, which means it even happens to someone to lose all their investment by investing in 1 token and many cryptocurrencies are dying (Maybe). So reducing risk is essential for the crypto market to open it to the people.
I think this can actual be a very good investment opportunity for normal people into crypto, because of reduced risk (diversifikation) and good profits (better chances than stock market). I think that just open the market for a wider range of people, that are scared at the moment because things like FTX, Luna and so on happens.
Earning process for your platform could not be clear, but I think, if the fond/etf is doing 1.00% of profit, the platform can charge a fee of 0.01% → I think investors would accept this for not having the trouble to buy the coins theirself (It is the concept of wikifolio in germany and it is working). I think this has a huge potential, and even 0.01% would be nice profit.
- Yes, I would love to use this function
- I won’t use, but I think many other people would
- No I don’t see anybody using it