xSigma to Launch Decentralized Index Fund

xSigma, a subsidiary of Chinese pipeline manufacturer ZK International, announced the launch of an ETF-like decentralized index fund and platform.

According to the company’s press release, the platform will be a decentralized fund based on the Ethereum blockchain. Alongside the fund, the company will also launch a platform that enables users to create their own crypto indexes.

The index platform, called xTF by xSigma, will allow users to configure fees and business models.

Indexes will be represented in the form of tokens issued on the Ethereum blockchain, the company explained. To issue new tokens, users will have to add more assets to the xSigma fund. Withdrawing profit from the indexes will require users to burn the tokens.

For easy governance, the company will issue ERC-20 utility tokens customers can use to cast votes.

Jiancong Huang, the chairman and CEO of ZK International, said the company’s two DeFi projects will target both institutional and individual investors.

The release of xTF by Sigma is scheduled for the second quarter of the year. The company noted that while the indexes won’t be regulated, it won’t have access to any assets deposited to Ethereum.