Topic: discontinued - page 2. (Read 2376 times)

I understand the desire to have a limited index and ETF and the software I have developed will allow me to create any index or ETF based on any criteria desired.

I made the composite first because I think it will benefit the community the most to have an accurate idea of the health and direction of GLBSE assets as a whole. If you are concerned about the seme-dead assets, I urge you to consider a couple of things: The index is based off of market cap so the amount of these assets held by the ETF will essentially be limited to the value that people place on these assets and since they are valued so lowly by the community in general, they have very little affect on the position of the ETF.

How often will the ETF rebalance to match the index after the addition of new securities or changes in the number outstanding?

I made the index first and have told people about it. So far, the only thing anyone has expressed a desire to be published about it has been a list of included tickers.

Nearly all assets on GLBSE will be listed and held according to their market cap relative to each other. Some things are not included because it would misrepresent the status of GLBSE. A good example of this is other ETFs or assets which only hold other GLBSE assets. They cause an 'exaggeration' of the market if they are included in the index.

I requested and received a custom api call from GLBSE which returns the number of outstanding shares. The order book does not affect an assets weight in the index.

The index does list bonds, so the ETF will hold these bonds when appropriate.

According to the information page (https://mostofmany.com/etf/1/), it's like holding all available trading GLBSE assets to me. They include everything: stocks, bonds, pirate-related, semi-dead assets, etc.

I think GLBSE-10 or GLBSE-20 based on some selection mechanism will be much more attractive.

You should consider making an actual composite index before the ETF.  SPDRS did not come before the S&P 500.

Some questions.

Will all assets on GLBSE be listed and held based on their market capitalization?

If not all of them, how will they be selected to be included in the ETF?

How will you determine, "Only GLBSE assets with outstanding shares are eligible for inclusion."?  Will you look only at assets that have an ask?  If this is the case, should you instead use an available market capitalization instead of a total market capitalization?

Will you hold bonds?

GLBSE Listing
(currently demo) Information Page

Summary
This ETF attempts to track the GLBSE market capitalization weighted index. In order to achieve this goal the fund weights each possible asset by its relative market cap and attempts to acquire a portfolio of assets with a balance as close as possible to the target weight. Dividends are reinvested in the fund upon receipt. The fund will not pay a dividend to shareholders. In kind creation and redemption will be made available after a short period of time to ensure functionality. Management fee is 0.02735113% of daily net assets.

Demo Data
https://mostofmany.com/etf/1/ currently publishes, in draft, information concerning the current state of the ETF. Until the ETF is launched, the information on this page should be considered a demonstration and not real data.

Assets
This ETF will hold a basket of assets which are listed on GLBSE and BTC. It will attempt to hold these assets in proportions as near to their weight on the GLBSE market capitalization weighted index. It will attempt to hold an amount of BTC equal to one quarter the net asset value of this ETF.

Method of Inclusion
Only GLBSE assets with outstanding shares are eligible for inclusion in this ETF. Assets which simply hold other GLBSE assets (such as other ETFs or most kinds of funds) are not eligible for inclusion.

Risk
As with anything, this ETF carries risks. Investment in this ETF carries an unknowable amount of risks. It is the responsibility of the investor to investigate, discover, and evaluated these risks as part of the decision whether or not to invest.
As with anything, after considering all the risks, should you decided to invest, only invest what you are prepared to lose.
These risks include, but are not limited to:
Volatility
The value of the shares of this ETF are expected to fluctuate to an unknowable degree in an unknowable direction.
The value of the assets which the ETF intends to acquire are expected to fluctuate to an unknowable degree in an unknowable direction.
The value of bitcoin expected to fluctuate to an unknowable degree in an unknowable direction.
Third Party Risk
This ETF operates under the assumption that other parties will continue to operate in the same manner they did when the ETF launched.
These other parties are under no obligation to continue operating.
This ETF or its operators cannot be held liable for the actions or inactions of other parties.
Chief among this category of risk is the concern that this ETF is heavily dependant on the open and honest operation of GLBSE.
Should GLBSE fail to continue operation, it is possible that this ETF and its shareholders may not be able to recover their rights or assets from the issuers of the held assets.
In such case where it is not possible to recover the rights or assets of some or all assets held by this ETF, neither this ETF nor its officers may be held responsible for the losses
Service Security Risk
Although every effort is made to maintain the security of service accounts held by this ETF, neither this ETF nor its officers will be held responsible for any losses due to theft, hacking, subterfuge or illegal activity.

Shareholder Rights
Any shareholder may exercise the right to redeem the equivalent number of shares of each asset to which their shares of this ETF are associated once redemption is made available. If the association is with a partial share, the shareholder will receive the fair value of the share adjusted to market liquidity in bitcoins.
To facilitate this exercise, the shareholder must be able to receive the associate shares and will be charged a fee of not less than 1% of the value of the assets adjusted to market liquidity and bitcoin redeemed.

In Kind Creation
Once made available, in kind creation of shares in this ETF may be arranged with the operator. In order to create shares in kind, the interested party will arrange the transfer of a basket of assets which has similar proportions of each asset to the current weight of each asset in the GLBSE market capitalization weighted composite index. Should the required portion call for a partial share, or should the interested party not possess a particular asset, an amount of bitcoin equal to the fair value of the amount of an asset in question adjusted to market liquidity may be taken in its place. Such creation will be charged a fee of not less than 1% of the value of the assets adjusted to market liquidity and bitcoin used in the creation.

Launch Date
6/27/12