As the cryptocurrency space is moving forward with rapid growth, we are seeing a lot of people jumping in to benefit from this growing ecosystem. With the evolution of Crypto index funds, the investors have now more options and strategy for making an investment in cryptocurrency. Especially users who are risk-averse might find more value in these cryptocurrency index funds.
Crypto20 (C20) is one of the first tokenized crypto index funds. C20 works as a model of the traditional index fund market, making it easier for seasoned investors and traders to jump into the crypto investment market without needing to research each individual asset.
The C20 asset is a portfolio of the top 20 cryptocurrencies which are predefined and cannot be changed by each individual investor. They have also a set strategy for when the portfolio allocations will be changed, how rebalancing is executed, and when assets are added or removed from the index.
Crypto20 has a very promising founding and fund management team who are looking after the sophisticated algorithm powering the Crypto20 index fund. Usability and ease of use are one of the best things about Crypto20. By just buying a single token, you can access a fund which tracks the top 20 crypto assets. crypto20.com
Shrimpy is the most powerful and versatile tool when it comes to market indexing, automated trading and portfolio rebalancing. With Shrimpy, you can create your own index fund based on a variety of different parameters like weighting, minimum and maximum asset allocation, asset buffer zone, and much more.
Unlike others, Shrimpy is a complete cryptocurrency portfolio automation platform with automated portfolio management, rebalancing, market indexing, and strategy backtesting. With Shrimpy, you can automate your trades directly from an exchange via trading bots, become a part of the passionate crypto community, and manage your portfolio with a powerful ‘universal exchange interface’. shrimpy.io
CryptoIndex (CIX100) is another cryptocurrency index fund which tracks the top 100 cryptocurrencies chosen by the companies “Zorax” technology. This CIX100 index is also available on Reuters, TradingView, and Bloomberg financial terminals. These financial services are already used by half a million traditional investors worldwide, bringing crypto index funds that much closer to mass adoption.
The AI algorithm used by CryptoIndex is claimed to use 200+ factors for a refined ranking and selection of the coins. The CIX100 automatically rebalances itself every month and has a built-in feature for detecting those coins that have an artificially inflated price. The CIX100 also includes ‘Sectoral Indexes’, covering a variety of different industries like advertising, supply chain, and storage.
CryptoIndex also uses an Ethereum based ERC-20 token called ‘CIX100’ which represents the actual portfolio assets under the CIX100 index fund. Unlike Crypto20, CryptoIndex is aimed towards seasoned investors and traders with a full-fledged trading platform and a suite of different features mainly for detailed analytics. cryptoindex.com
4. Ember Fund
Ember Fund is another cryptocurrency index fund, widely known for its intuitive design. The best thing about Ember Fund is that it’s completely non-custodial, which means the investors would control all their funds in a wallet and won’t be sharing their keys with anyone.
Once you purchase a portfolio using BTC, Ember Fund handles the rest. It takes care of things like rebalancing and automated trade via different exchanges. You can track the progress of your portfolio using the Ember mobile app. Ember Fund charges a 1.5% commission on the final withdrawal. Ember Fund is a new entrant in the market and although they have a small team, they are doing their best to improve the product and iterate on their mission. emberfund.io
Bitwise is one of the leading providers of crypto index funds. Pioneered in the crypto asset management space, Bitwise created one of the world’s first cryptocurrency index funds called ‘Bitwise 10 Private Index Fund’. With a well-diversified exposure, this fund tracks the 10 largest cryptocurrencies weighted by 5-year diluted market capitalization, and the rebalancing of the fund happens every month.
Bitwise has a great focus on security and privacy. All of the coins are securely stored in air-gapped cold storage with multi-sig technology. To facilitate the investors, they can also do automated tax preparation where every investor gets a Schedule K-1 so that the complexities of the filing can be reduced. They also have a solid team with a range of institutional investors who have diverse backgrounds. bitwiseinvestments.com