Decentralized token folios package
entire narratives into one trade with the
freedom & flexibility of the blockchain.
DTFs function like ETFs, but operate permissionlessly on the blockchain—combining portfolio diversification with the flexibility of DeFi.
DTFs offer streamlined exposure to specific themes or sectors that could shape crypto’s next wave of growth — like DeFi, gaming, or AI.
Anyone can create a new DTF, and anyone can mint or redeem them—no need for exclusive third-party intermediaries or large institutions.
All underlying assets and transactions are visible onchain 24/7, reducing uncertainty and offering up-to-date information for investors.
DTFs offer strategic exposure at any scale, from broad-market trends to emerging sectors.
Over the last decade, crypto has exploded from a niche experiment into a $3.5T+ global marketplace—offering the potential to revolutionize finance, banking, and even money itself. Today, blockchains form the backbone of a growing range of digital economies, supporting emerging sectors ranging from finance, infrastructure, and computing to gaming, art, and AI.
But with millions of tokens vying for attention, even seasoned experts can struggle to keep up. DTFs cut through the noise by consolidating entire investment theses into simple packages. By bundling dozens or hundreds of tokens into single, easily-traded assets, DTFs offer strategic exposure to specific sectors—or the crypto market more broadly—without scouring for each individual asset.
Crypto markets now reflect dozens of real, distinct niches—from large-cap mainstays to rapidly emerging themes that capture significant attention. DTFs bundle these trends into thematic indexes, so instead of hunting for the next big thing, investors can align with specific narratives—like decentralized finance, gaming, AI, or even meme coins.
With traditional indexes, it can take months or even years to form a new fund around a breakthrough area. By contrast, DTFs offer near-instant launch capabilities. When a new narrative gains traction—such as layer-2 scaling solutions or novel computing tokens—a DTF can be designed and created promptly, providing targeted exposure for anyone who wants it.
As crypto matures, diverse new sectors continue to grow. DTFs offer streamlined exposure to trending themes.
ETF investing is one of traditional finance’s greatest success stories. Starting with mutual funds in the ‘70s and propelled by ETFs in the ‘90s, ETF investing ignited a multi-decade boom by offering easy diversification and tailored exposure to retail investors and institutions alike. Today, index mutual funds and ETFs are a nearly $20 trillion market.
DTFs build on the basic idea behind ETF-style investing—broad exposure and simpler access—while operating in a fully on-chain, permissionless environment. Rather than relying on centralized entities, DTFs rely on decentralized protocols, where anyone can create, mint, or redeem tokens without intermediaries or authorized participants.
This model unlocks continuous transparency, 24/7 trading, and decentralized governance, underscoring key differences from traditional products. As a result, DTFs offer the familiar benefits of ETF investing, but with a new degree of openness, accessibility, and innovation that stems from their blockchain-native design.
Although DTFs are very different from ETFs and mutual funds, it can be helpful to compare some of their characteristics.
Traditional financial products often update their holdings on a daily or monthly schedule. DTFs improve on this model with real-time, onchain transparency that offers a clear view into each underlying component at any moment. This immediate transparency fosters trust, since anyone can verify how tokens are allocated, how yield is generated, and how frequently DTF rebalancing occurs.
A key feature of DTFs lies in the permissionless nature of their technology. In legacy systems, only a handful of large entities can create new ETF products, and share creation/redemption is often restricted to designated participants. With DTFs, anyone can deploy a new basket of tokens, and anyone with an internet connection can mint or redeem them. This open model empowers smaller innovators and even individuals to launch curated folios around new ideas—or mirror the portfolios of experienced market participants—on a global scale.
Fosters innovation by lowering barriers to entry
Reduces reliance on gatekeepers for asset creation, minting & redemption
Helps democratize access to sophisticated financial strategies
Unlike traditional funds that live inside proprietary brokerage systems, DTFs exist on open blockchains, allowing them to freely interact with lending protocols, automated market makers and more. These open ecosystems enable a building-block approach: a DTF can hold yield-bearing tokens, collateralize assets in lending pools, or participate in sophisticated hedging strategies, all without leaving the chain.
Any tokenized position—e.g., liquidity provider or lending tokens—can be included in a DTF.
DTFs can tap into multiple sources of liquidity & yield to optimize performance and streamline operations.
Strategic combinations of DeFi primitives can push well beyond the bounds of traditional ETF investing.
By harnessing the speed, flexibility, and transparency of decentralized technology, DTFs introduce a new chapter to ETF investing. DTFs offer targeted exposure to the rapidly shifting crypto landscape—all while delivering real-time insights and 24/7 global tradability. As crypto markets continue to evolve, decentralized token folios stand poised to become a key investment tool for digital asset markets, whatever form they may take.
