Blockchain technology could revolutionize the ETF industry by enabling the use of treasurys as assets.
Blockchain technology and tokenization could challenge the traditional ETF model.
Recently, Janus Henderson announced its partnership with Anemoy Limited and Centrifuge to establish Anemoy's Liquid Treasury Fund (LTF), an on-chain technology-based fund that enables investors to access short-term U.S. Treasury bills directly.
"Nick Cherney, Janus Henderson's head of innovation, stated on CNBC's "ETF Edge" that the evolution of investment services to be more efficient and less costly is not necessarily a threat to the ETF industry."
"We want to be early in that opportunity," he said.
According to a news release by the firm, this is their first tokenized fund.
Cherney suggests that the ETF would have traditional features, but it would allow investors to trade on a blockchain-based platform, providing instantaneous 24/7 trading, instantaneous settlement, and total transparency over fund holding, which goes beyond what ETFs offer.
He acknowledged it could irreversibly change the way business gets done for some.
Cherney stated that there are certainly individuals in the ecosystem who may find it threatening, but those players are becoming involved.
'24/7 trading makes me nervous'
Todd Sohn of Strategas Securities is worried about the dangers of perpetual trading accessibility.
The ETF and technical strategist of the firm stated that they are nervous about 24/7 trading, and they would be cautious depending on who is using it.
Markets
You might also like
- Japan's Nikkei drops by 3%, while Australia reaches a new record high, as investors anticipate the release of China's data.
- Blockchain technology could revolutionize the ETF industry by enabling the use of treasurys as assets.
- Sanwa becomes a target of ValueAct's investment.
- By 2050, the U.S. aims to triple its nuclear power, and coal communities may offer a way forward.
- The U.S. government may face legal action from JPMorgan Chase over Zelle scams.