just discovered this project and read the whitepaper but it's not clear to me whether the index fund I create actually holds the underlying asset (ie you have some exchange integration that buys the underlying asset/coin) or is this more a derivative (where the index fund simply tracks the underlying price of each asset/coin based on some price feed)?
got an answer on their telegram. it's basically a derivative you are creating. say when you create an index fund where you, for eg, have a 25% allocation into btc, eth, ltc, xrp you actually dont own any of the underlying coins when you send COIN to their SC. There is nothing in the backend that actually connects to an exchange, buys and holds those coins. They'll effectively get some price feed from somewhere that will provide pricing for you index fund that can be used to value your portfolio and importantly how much profit or loss you make when you liquidate. You get back the difference in value in COIN. Think CFDs (contracts for difference)