The crypto economy has grown exponentially over the past few years, with thousands of tokens being launched daily. It is not humanly possible to keep track of every latest crypto trend and recognize the future potential.

Enter Decentralized Token Folios (DTFs) — the new-age financial vehicle that packages an array of crypto tokens into a single basket.

Understanding DTFs: ETFs but for crypto

DTFs are analogous to ETFs but belong in the crypto ecosystem. The way an ETF offers you exposure to multiple stocks, a DTF puts different crypto tokens into a single on-chain index.

To put it simply, a DTF exposes you to a basket of different crypto assets. It bundles dozens or hundreds of tokens into a single token thematically that can easily be traded on-chain.

Unlike the centralized model of the ETF category, a DTF is entirely decentralized, as it is self-custodied and natively traded on decentralized exchanges.

So, nobody is ever big enough to control your assets. You are the sole owner of your DTF holdings.

Portfolio diversification, specific niches, and more…

The primary benefit a DTF offers to crypto investors is portfolio diversification. A single tokenized index gives you exposure to multiple crypto tokens, minimizing risks.

A DTF is an ideal vehicle to gain exposure to specific niches or narratives you prefer in the ever-evolving crypto sector, such as gaming, AI, or PolitiFi.

Thanks to the on-chain nature of DTFs, you can monitor the latest transactions 24/7 — leaving no space for anxiety or uncertainty.

Reserve — Mint, trade, redeem, and stake DTFs in a click

Reserve is a leading permissionless platform that offers you the infrastructure to mint or invest in DTFs in a single click.

Supported by luminaries such as Sam Altman, Peter Thiel, and Paul Atkins, Reserve allows you to create DTFs that can hold hundreds of tokens.

Reserve has a TVL worth an impressive $222 million, generating an annualized protocol revenue of $5.2 million.

DTFs minted on Reserve are live on leading blockchain networks such as Ethereum, Base, and (soon) Solana. Each DTF is 100% backed by other assets on the same blockchain.

There are two protocols on which you can create these indices on Reserve: the Index Protocol and the Yield Protocol.

The Reserve Index Protocol intends to become a “decentralized BlackRock.” The goal is to eventually become the largest index manager in the crypto economy. However, Reserve, unlike BlackRock, lets any individual or entity — not one large organization — create DTFs.

While the Index Protocol gives you exposure to multiple tokens, the Yield Protocol lets you generate passive income by lending or staking tokens.

The DTFs you own on Reserve are held by a smart contract as its governance model is entirely decentralized. It means no central intermediary can freeze your assets.

It’s the right time to take a pause and understand what a smart contract is. It is a self-executing program stored on a blockchain that runs only when certain pre-written and agreed-to conditions are met, with no tolerance for violations.

Live DTFs on Reserve

A number of DTFs are already live on the platform.

Reserve is proud to host the Bloomberg Galaxy Crypto Index DTF , the first on-chain, transparent, and 24/7 index.

The DTF tracks the Bloomberg Galaxy Crypto Index (“BGCI”). The BGCI measures the performance of the largest cryptocurrencies traded in USD. No asset holds more than 35% and no less than 1% of the index’s overall value.

Another notable DTF that Reserve hosts on its platform is the MarketVector™ Digital Assets 25 Index DTF .

The DTF tracks the MarketVector™ Digital Assets 25 Index (MVDA25), a modified market cap-weighted index that tracks the performance of the 25 largest and most liquid digital assets.

Why choose Reserve for DTFs?

The largest DTF platform by TVL, Reserve has established itself as the pioneering build-your-own crypto index platform.

It doesn't matter whether you are an experienced finance executive building a resilient product or a retail trader looking to disrupt trading behavior. On Reserve, DTFs or crypto indices can be minted by anyone, for anyone.