Blockchain technology and tokenization could challenge the traditional ETF model.
Janus Henderson recently announced the creation of the Anemoi Liquid Treasury Fund (LTF) in partnership with Anemoi Limited and Centrifuge. The fund is an on-chain technology-based fund that gives investors direct access to short-term US Treasury bills.
“It's not necessarily a threat to the ETF industry,” Nick Charney, head of innovation at Janus Henderson, told CNBC's “ETF Edge” this week. “We see this as a natural evolution of our efforts to make the way we provide investment services to our clients more efficient and less costly.”
“We want to be quick on that opportunity,” he said.
this is Janus HendersonAccording to the company's news release, it is the company's first tokenized fund.
Charney points out that it has all the traditional features of an ETF. However, investors can buy and sell it on a blockchain-based platform, giving the end investor “24/7 instant trading, instant settlement, and complete transparency of fund holdings, which goes beyond what ETFs offer. transparency.
He acknowledged that the way business is done may change irreversibly for some.
“I think there are certainly people in the ecosystem that are potentially threatening, and we see those players being involved,” Charney added.
“Trading 24 hours a day, 7 days a week makes me nervous.”
Todd Thorne of Strategas Securities is concerned about the risks associated with always being able to trade.
The company's ETF and technical strategist said, “Trading 24 hours a day, 365 days a year can be stressful. Depending on who is using this, you may want to be a little careful about that.''
