James, here is a brief summary of the SPV + ETF market. It is designed to solve two problems: 1) A LOT of people are designing portals to sell tokenized securities of companies that are set up to own assets like buildings (Special Purpose Vehicles). Most of these are real estate deals. Some of them are VC deals, or mining presales, or solar developments, or various other kinds of assets, even art. Their idea is that this will be an efficient way to sell deals that are smaller than about $50M, which is a new market for securitization. However, it seems unlikely that they can sell all of these deals to individual crowdfunders. They will need to get money from the professional investors that buy the larger deals. And, will not be much liquidity (bidding) for the small deals. 2) All of the attempts that I have seen to buy these securities into bigger funds have been expensive and inefficient.
My goal is to generate demand from investors that need a larger or more liquid security than the SPVs. We can do this by bringing the SPV securities into an exchange where we can then swap them into much bigger ETFs. It’s an odd kind of ETF that is specifically designed to accept and even underwrite underlying securities that have limited liquidity. It’s the new instrument that the real estate and SPV market needs.