Kryptoin

Trading Desk

SPECIALIZED TRADING

Platform For ETFs

A specialized trading platform that is required by ETFs. Trading desks make markets, provide liquidity and are able capitalize on exchange arbitrage once Kryptoin is listed on the exchanges.

ETF’s require a specialized hedging mechanism. This mechanism sets it apart from closed end funds and standard tokens because it allows the coin to trade with a true NAV even though it is may not be listed on the exchange in the beginning stages

Unlike closed end funds, large block trades can be executed in an ETF regardless of trading volume on the exchange with no impact on the price. When a large customer buys or sells a block or large quantity of a closed end coin on the exchange it wil affect the price of all the other coins.

An ETF unique infrastructure fundamentally different and the Kryptoin platfrom was built to provide the highest liquidity for trading and hedging of all positions of the coin on or off the exchange.

Creation

ETFs can issue newly created currency instead of buying existing coins them from the open market. The funds used to purchase the new currency is used to buy the proportionate basket currencies and will create a perfect hedge. As the value of the basket currencies change the value of the NAV of the ETF will change accordingly.

Redemption

Trading Desks are also equiped to redeem Kryptoin from their clients or on the exchanges. When clients sell Kryptoin back to the the trading desk the trading desk will simultaneiously selll the basket currencies in proportion on the open exchange and use the funds to satisfy the redemption.

Arbitrage

Once Kryptoin becomes exchange listed there will be a natural discrepancy between the price of Kryptoin on the exchange and its NAV value.

When the price on the exchange is at a premium to NAV the trading desk can sell Kryptoin on the exchange and purchase the underlying currencies to capitalize on the arbitrage.

Alternatively when the price on the exchange is at a discount to NAV the trading desk can buy Kryptoin on the exchange and sell the basket.

The market maker capabilities of the trading desk do not care which direction the market moves.

https://www.bloomberg.com/features/2016-etf-files/toy/

Licensing

A license to use the trading desk can be acquired for qualifiying entities that want to provide access to their clients into the crypto currency markets in a trading vehicle that is more stable than purchasing any one individual coin.

To inquire about the opportunities to operate a trading desk for your financial institution, brokerage or investment company please book an appointment here to speak to representative.

Contact

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Any question? Reach out to us and we’ll get back to you shortly.