The Case for Crypto Funds: Transparent, Less Expensive, More Diverse

While it can be easy to build portfolios that focus on stocks and shares or fiat currencies, diversifying into crypto funds has proven harder for consumers and professionals alike.

Another issue has been how portfolio managers in the crypto space have been struggling to share their strategies with the public.

Interest in crypto funds is on the rise, according to one startup that enables users to create their own funds or follow those that have been established by others.

The company argues that tokenized funds broaden the class of assets that can be invested in and offer an entry point to qualified and smaller private investors simultaneously.

Investments can be received in the form of fiat or crypto - and the ownership of shares can be proven in the form of tokens, which can be traded in authorized marketplaces.

Automation would have the potential to deliver accurate updates on how a fund is performing far quicker and more precise than conventional methods.

Through tokenized funds, traders can create smart contracts and issue ERC-20-compliant tokens, which equate to a single unit.

While portfolio managers benefit from software complete with built-in analytical tools - enabling them to test and execute a broad range of trading strategies - users get to browse a wide range of funds based on risk, with an at-a-glance look at how each of them have performed to date.

Rating systems are provided for each of the funds on the platform, and an integrated wallet is designed to make accessing cryptocurrencies and tokens as simple as possible.

Its native utility token, TBX, is listed on several exchanges, and in November 2018, Tokenbox entered into a partnership with a United Kingdom-based platform that allows crypto coins and tokens to be bought instantly using debit or credit cards.