Decentralized Bitcoin ETF

The article was created as an idea to expand the scope of tBTC. In the article I will consider the creation of a decentralized Bitcoin ETF based on tBTC also baskets with other tokens (ETH, DAI).

An ETF is an investment tool that includes a basket of securities. ETFs are very popular in the market. Currently, they are used for a myriad of different investment strategies. These strategies include income generation, speculation, price increases, and to offset risk in an investor’s portfolio.

In this regard, there is a need to create decentralized Bitcoin ETF. This ETF will be protected by the laws of mathematics and cryptography.

Create an ERC-20 token (Example:dKEEP) that will work as a tokenized investment fund that is backed by tBTC or a basket of assets (tBTC-60%, ETH-20%, DAI-20%). The token will be built on anonymous and secure contracts from Keep Network.

This idea has a number of advantages:

The development of an ERC-20 token pegged to the bitcoin price opens up new opportunities for creating investment instruments based on smart contracts. Investors can decide to buy BTC by purchasing tBTC through a cryptocurrency fund. Investors holding tBTC can use smart contracts to receive monthly dividend payments or adjust their level of risk tolerance by automatically entering and exiting trades (or funds) based on profits.

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