What is an ETF
ETFs replicate an index in a simple way, allowing you to invest in multiple assets through a single tool.
For example, by investing in SPDR S&P 500 ETF you spread your investment over the securities that make up the fund. This allows you to reduce the risk associated with your investment by diversifying it.
Advantages of ETFs
Portfolio diversification is easily achievable, allowing for a reduction in the risk associated with your investment.
The commissions on transactions are much lower than those related to other types of investment (up to 70% lower in some cases).
ETFs generally follow a positive trend.
The S&P 500 ETFs grow on average by 10% each year. That’s why investing on ETFs has low risks.
The world needs Jar ETF
Cryptocurrencies are volatile and knowing which one to buy is tricky even for the most experienced investors. This stops many people from investing in the cryptocurrency world, since there isn’t any type of protection in investments. Jar ETF aims to reduce risks linked to investments in cryptocurrencies: by utilizing ETFs created by Jar ETF, anyone will be able to buy cryptocurrency at a relatively lower risk in an easy, safe and quick way.
How do ETFs work in Jar ETF?
Everything starts from the first ETF: every quarter a new ETF will be created with 25 new cryptocurrencies and it will substitute the former. The cryptocurrencies that make up the ETF are chosen at the beginning of every quarter: JAR token holders will vote which cryptocurrencies will make up the ETF. The more JAR tokens you hold, the more decision-making power you will have.
For this reason we will need 2 coins: JAR token and JTF token.
How Jar ETF generates revenue
Investors in ETFs developed by Jar ETF will have to pay a small tax on transactions. The value of a JAR token is 0.00001% of the quarterly profit generated by the Jar ETF platform. This means that the value of a JAR token depends on the volume of the transactions happening on our platform.
How voting works
Before composing a new ETF, Jar ETF team will publish a list of cryptocurrencies that can create the ETF. JAR token holders will have the possibility to vote which of these should make up the next ETF. Every vote will cost 1 JAR, and 2 scenarios can occur:
- If the voted cryptocurrency doesn’t end up in the ETF, the voter will have back his JAR tokens.
- If the voted cryptocurrency ends up in the ETF, at the end of the quarter the voter will get more or less JAR tokens depending on the trend of the cryptocurrency he voted.
“ETFs will eat the cryptocurrencies market” – Jar ETF