research-article

Tokenized index funds: : A blockchain-based concept and a multidisciplinary research framework

Author:

Raffaele Fabio CirielloAuthors Info & Claims

Volume 61, Issue C

https://doi.org/10.1016/j.ijinfomgt.2021.102400

Published: 01 December 2021 Publication History

Abstract

In response to the bleak prospects of today’s financial markets, a wave of financial and technological innovations emerges, bringing about potential benefits but also new challenges. For instance, tokenized securities are a new kind of blockchain-based asset enabling price stability, programmability, pseudonymity, and transaction efficiency, while also introducing new regulatory challenges and uncertainties. Conversely, index funds are an established investment device enabling broad diversification in a cost-effective, tax-efficient, and transparent way, while potentially also contributing to concentration of market power, intermediation cost, access barriers for underbanked or impoverished investors, increased market volatility, and human behavioral challenges. This paper conceptually develops Tokenized Index Funds as a hybrid approach that combines the benefits of tokenized securities and index funds while alleviating some of their drawbacks. Based thereupon, a corresponding multidisciplinary research framework is presented, with sample research questions along the activities of design and features, business and economics, management and organization, and law and regulation.

Highlights

•

Blockchain can help to combine benefits of tokenized securities and index funds.

•

Benefits include cost-efficiency, inclusion, automation, transparency, and nudging.

•

Tokenized index funds enable predictable volatility and long-term growth.

•

Social, economic, technological, and ethical challenges must be considered.

•

Open questions concern design, business models, management, and regulation.

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Cited By

Ciriello RRichter AMathiassen L(2024)Emergence of creativity in IS development teamsInternational Journal of Information Management: The Journal for Information Professionals10.1016/j.ijinfomgt.2023.10269874:COnline publication date: 27-Feb-2024
https://dl.acm.org/doi/10.1016/j.ijinfomgt.2023.102698

Index Terms

Tokenized index funds: A blockchain-based concept and a multidisciplinary research framework

Index terms have been assigned to the content through auto-classification.

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cover image International Journal of Information Management: The Journal for Information Professionals

International Journal of Information Management: The Journal for Information Professionals Volume 61, Issue C

Dec 2021

247 pages

ISSN:0268-4012

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Elsevier Ltd.

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Elsevier Science Publishers B. V.

Netherlands

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Published: 01 December 2021

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Ciriello RRichter AMathiassen L(2024)Emergence of creativity in IS development teamsInternational Journal of Information Management: The Journal for Information Professionals10.1016/j.ijinfomgt.2023.10269874:COnline publication date: 27-Feb-2024
https://dl.acm.org/doi/10.1016/j.ijinfomgt.2023.102698

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