Blockchain-Based ETF Trading Points Towards a New Direction For Digital Assets

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Recent reports in the crypto space show that investors in some regions around the globe can now trade ETFs. More and more investors have started to buy and sell the biggest exchange-traded funds with cryptocurrencies. This suggests a vast growth in the number of financial assets hitting the Blockchain scene. Indicating the exact direction that the Blockchain space is headed.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$7,933.00
0.52%

DX.Exchange Among the Pioneers in the New Framework

Estonia-based crypto exchange DX.Exchange on Wednesday revealed that its users can now trade up to 15 of the most well known ETFs on its network. The cryptocurrency exchange, also hinted at the direction were the nascent market may be heading as a result of this development.

DX.Exchange’s announcement is a part of the growing shift towards tokenized financial assets. This is a move that proponents argue will give investors the opportunity to trade traditional assets. Originally, such trading might have otherwise being difficult to carry out. Daniel Skowronski, who is the co-founder and CEO of the Estonia-based exchange said:

“If you consider stock trading, for example, it is for only the middle and upper-class individuals. When there’s fractional ownership, this paves way for stock ownership to the bottom people. For example, investors can own $10 worth of shares for Facebook.”

Understanding the Fractional Ownership Benefit

Fractional ownership can be defined as a situation where investors will be able to own part of one stock, whether ETF or any other type of asset.

Investors can exchange the Ether (ETH), ETH/USD, +0.50% (the native crypto asset of the Ethereum Blockchain), to get exposure to any ETFs of their choice on the exchange. These ETFs are purchased and held by the MarketPlace Securities (MPS). MPS is a partner of the DX.Exchange.

The ETF options available on the exchange include the SPDR S&P 500 ETF Trust (SPY SPY, -0.61%) which tracks the S&P 500 and Trust QQQ, (theInvesco QQQ) -0.57%  which tracks the Nasdaq-100 index. In addition to this, investors will have the opportunity to use digital currencies when placing bets against the popular indexes. This will be done through products like the ProShares Short QQQ PSQ, +0.62% and the ProShares Short S&P 500 SH, +0.71%.

Ethereum (ETH) Trading At $140 At Press Time

Ex.Exchange makes this move two months after it began offering stock trading. The Estonian based exchange isn’t under the US regulators. However, because it is being regulated by the ESMA (European Securities and Markets Authority), it is available in 170 countries.

In other reports, ETH/USD corrected a few points. Although dips remain supported above $134. Now ETH/USD is grinding slowly near 139-140 which is a resistance area. It is likely going to pass that position. There’s an ascending pattern with support positions at $136 via the hourly chart of the pair.

The ETH/USD pair will likely continue higher towards the $145 position as long as it stays above the $134 support region.

Ethereum’s price is now bullish against the US Dollar and the leading digital asset Bitcoin (BTC). ETH/USD could eventually surge to record a new monthly high should it break the $140 barrier in the near term.

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