From Wall Street to Wallet

An ETFT (ETF Token) represents an economic interest in a defined portfolio or investment strategy. Alloco connects portfolio construction, asset execution, net asset value calculation, and token issuance within one product framework. Instead of assembling each underlying position individually, investors hold units of the ETFT. The value of each unit changes with the portfolio’s assets, liabilities, income, expenses, and trading results.

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What an ETFT contains

Every ETFT has an investment objective, a portfolio methodology, an execution model, a valuation policy, and creation and redemption terms. These determine what the product owns or references, how it changes over time, and how investors enter or exit.

Component	What it defines
Investment mandate	The opportunity the product is designed to access
Portfolio methodology	Asset selection, weighting, and rebalancing
Implementation	Securities, derivatives, cash, or a combination
Unit accounting	How portfolio value maps to token units
Market access	Primary creation and redemption, plus secondary trading where enabled

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One framework, different implementations

Equity-backed ETFTs hold supported securities and cash through the product’s designated accounts. Synthetic ETFTs use approved derivatives to obtain contract-defined exposure. Hybrid ETFTs combine securities, derivatives, and cash. These implementations have different risks. A perpetual contract referencing an unlisted company is a derivative position. It does not give the product ownership of that company’s private shares or a right to receive shares after an IPO.

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Two ways to transact

In the primary market, eligible participants create or redeem units through the product’s issuance mechanism. Creation adds capital and units; redemption removes units and delivers the applicable proceeds. Where enabled, the secondary market lets participants trade existing units with a pool or another market participant. A secondary trade normally changes who holds the units, without changing the product’s assets or outstanding supply. See Product lifecycle and Secondary markets.

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Issuance and investor rights

Alloco acts as the issuer within the ETFT framework. Each product’s documents identify the specific legal issuing entity and any separate investment manager or service providers. ETFT is a product term, not a statement that a token is a US-registered ETF, exchange-listed security, or SEC-approved product. Investor rights, asset ownership arrangements, eligibility, and transfer restrictions are defined by the relevant product documents. Holding an ETFT does not automatically confer direct ownership or voting rights in the underlying companies.

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Product-level availability

A product’s page identifies its current market stage, supported assets and networks, dealing terms, and enabled features. A mechanism described in these docs does not mean that every ETFT supports it. Read the product specification before transacting.