It appears that digital exchange traded funds (ETFs) are not that far off the horizon to become mainstream, with some exchanges already delving into this sector. The EU-regulated DX Exchange has now broadened its platform of offerings and has launched Digital ETF’s trading for its ever growing audience, reports Cointelegraph.
This means that DX.Exchange has begun to offer the first tokenized ETFs trading. This should be an exciting time for the industry as it continues to grow with several opportunities for the discerning investor on the horizon.
The tokenized ETFs are compatible with the latest guidelines put forth by the European Securities and Markets Authority, and comply with the Markets in Financial Instruments Directive II (MiFID II).
This development by DX Exchange means several things. There should be more diversification for the crypto investor as these can now invest in another financial tool. There should also be broader liquidity for ETF’s that include after-hours trading as well as lower costs when compared to current markets.
As of today, there is over $130 Billion worth of cryptocurrencies that can now be invested in digital stocks and ETFs. Now they can invest in real-world assets, on the blockchain. It remains to be seen whether this offer will increase the likelihood of more investors getting into the crypto market.
Because cryptocurrencies are so accessible, their usage is increasing exponentially in so-called “unbanked economies” and in developing countries. By allowing not only digital stocks trading, but ETFs as well, DX.Exchange can potentially connect billions of people to the global investment markets.
DX.Exchange which is registered in Estonia was launched in January 2019 and uses Nasdaq’s Financial Information Exchange protocol to deliver its products.
The chief operating officer of DX.Exchange, Amedeo Moscato indicated that this latest offering by the company should open the vast world of traditional financial assets to millions of crypto investors.
Initially it had proposed that crypto holders buy tokens that are backed by stocks in major listed companies such as Amazon, Apple, Facebook and Google. Trading is currently only available for those traders in the EU but US traders should be able to access the platform some time this year.
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