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Creating a tokenized fund in the Ethereum blockchain

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Creating a tokenized fund in the Ethereum blockchain

Cryptocurrencies are reaching a turning point. As their popularity increases, so do the pertaining opportunities. As the author is cryptocurrency trader and investor, he sees this as the key moment to think about potential business ventures in the area.

The purpose of this study was to gather information on the problems and opportunities that cryptocurrencies have as an investment, and the best way to create a new investment vehicle that tracks the cryptocurrency market.

The data was collected from online databases and from technical white papers. The databases collect and store the daily price of each of the cryptocurrencies in the market. A whitepaper is a technical report on the inner workings of a cryptocurrency.

It was found that many of the problems encumbering cryptocurrencies are related to trust, volatility, and legal risk. It was suggested that an investment structure that can ensure trust, reduce volatility, and remain unaffected by regulation, will prove to be a very successful business opportunity that might get traditional investors into the cryptocurrency market.

It was suggested that the best way to do such an investment vehicle is through the combination of innovative investment structures and traditional ones. A tokenized exchange-traded fund that tracks a cryptocurrency market index, was proposed as the best alternative.

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