Cryptocurrency Index Funds
Crypto20 is a tokenized crypto-only index fund, started in 2017. According to Invictus, the company behind the fund, Crypto20 was the pioneering index investment vehicle in the industry. The fund was designed with the goal to provide the investment community with a way to track the performance of the crypto markets as a whole by holding a single crypto asset. The fund's constituents are picked after extensive backtesting and include assets like ETH, BTC, EOS, BCH, BCV, NEO, and more. The fund rebalances on a weekly basis and caps each asset at 10%. Crypto20 doesn't charge any broker or exit fees and there is no investment minimum. The fund, however, charges a minimal management fee of 0.5%, which is low compared to the fees charged by other fund providers in the field.
The Digital Asset Index Fund is run in collaboration between Bitwise Asset Management and Morgan Creek and is tailored to the needs and the rigorous standards of institutional investors. The fund is overseen by an advisory committee comprised of the experts behind Morgan Creek’s asset allocation and Bitwise’s comprehensive, rules-based digital asset index methodology. The index tracks the value of the biggest and most liquid assets, representing over 75% of the crypto market. The constituents include Bitcoin, Ethereum, Bitcoin Cash, Litecoin, EOS, Tezos, Cardano, Dash, Ethereum Classic, and Zcash. 100% of the assets in the fund are held in cold storage and trading takes place on multiple exchanges. The minimum investment is $50,000 and the management fee is 2%. There is no performance fee.
The Bitwise 10 Crypto Index Fund tracks the cryptocurrencies in the Bitwise 10 Large Cap Crypto Index (BITX), a basket of the largest cryptoassets by market cap. Fund constituents include Bitcoin (BTC) and major altcoins like Ethereum (ETH), XRP, and Litecoin (LTC). The Crypto Index Fund is weighted by 5-year diluted market cap and is rebalanced monthly. Investors must be U.S.-based and accredited, and the minimum investment is $25,000. Founded in 2017, Bitwise is considered a leading provider of crypto index fund investment services. In addition to the Crypto Index Fund, Bitwise offers the Index Offshore Fund, the Bitcoin Fund, and the Ethereum Fund. Bitwise also offers the Digital Asset Index Fund in partnership with Morgan Creek.
The 21Shares Crypto Basket Index ETP (HODL) is a fund that tracks an index comprised of the top five cryptocurrencies by market cap. It is an exchange-traded product or ETP, which makes it as accessible to investors as ordinary stocks. At all times, 21Shares keeps assets in cold storage equal to 100% of the value of the notes. The fund was launched in November 2018 and charges a 2.5% annual fee. In addition to the Crypto Basket ETP, 21Shares offers ABBA, a CHF-denominated Bitcoin and Ether ETP, MOON, which tracks an index composed of the largest native tokens of original protocols, and KEYS, which tracks the Bitwise Select 10 Large Cap Crypto Index.
IX15, managed by Isonex Capital, is an equal weight index fund holding the top 15 digital coins and represents 75% of the cryptocurrency market cap. Each of the constituents represents 6.7% of the overall portfolio. The fund is rebalanced automatically so that, at any given point, the portfolio includes only the 15 leading cryptocurrencies by market cap. According to the team behind the project, IX15 is the world's first tokenized equal weight digital currency index fund. Investing in the fund happens through the purchase of the IX15 token. The fund's management fees are fixed at 0.5% P/A. The IX15 fund is a preferred investment vehicle by beginner and professional investors. The fund's historical performance since adoption, listed on its site, reveals promising results that surpass single-asset investments.
Iconomi is a London-based company that offers a variety of cryptocurrency-related products and services. Iconomi's Blockchain Index is a passively-managed cryptocurrency index fund comprised of different digital assets, including BTC, ETH, LTC, BNB, ETC, and more. The focus of the constituents is on nascent projects with potential strategic importance in the future distributed economy. They are added based on fundamental analysis and potential strategic importance in the future distributed economy. There is no maximum number of included cryptocurrencies in the index. The fund is market-cap weighted, adjusted for trading volume, and free float. Rebalancing is done on the first day of each month. The fund's fee is set at 3.00% with an additional 0.50% exit fee.
The Cryptoindex platform aims to ensure easy entry into the crypto index fund investment market. Aside from the rich analytics tools that the platform provides (live quotes, stock charts, real-time Index data, predictions, aggregated news & sentiment data, etc.), Cryptoindex also runs the Cryptoindex 100 Index. The index includes the top 100 coins and is continuously rebalanced. Cryptoindex clients can invest in the index through the ERC-20 token called CIX100. CIX100 replicates the performance of the index constituents. The fund is under the management of Cryptoindex's official partners CI Capital SICAV plc. The fund operates as a self-managed collective investment scheme.
The Grayscale Digital Large Cap Fund (GDLC) offers exposure to a diversified mix of large-cap digital assets. Its shares were the first securities in the United States to derive their value from cryptocurrencies. Fund components include Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and Litecoin (LTC). The fund is market-cap weighted, so shares track the aggregate value of each component's market price. Assets are held in cold storage with Coinbase Custody. Established in 2013 by Digital Currency Group, Grayscale also offers single-asset investment products like Grayscale Bitcoin Trust and trusts for several altcoins.
LyCI is a service cryptocurrency token offered by the Lykke Exchange. The LyCI Service Token's settlement value tracks the performance of the Lykke Index. The index includes a basket of the top 25 cryptocurrencies by market cap, including Bitcoin, Ripple, Ethereum, Litecoin, Stellar, and more. The list of portfolio constituents changes in real-time, depending on their performance. As soon as an asset in the portfolio starts to devalue, LyCI starts reducing the position allocated to it and increases the positions in the appreciating assets. To invest in the index, one has to buy the LyCI token. The LyCI fund charges a 1.45% per year service fee that is deducted from the basket value upon settlement.
ITI Funds is a global asset management platform that offers investors access to a variety of products, including a selected portfolio of ETFs, crypto, and alternative funds. ITI Funds' Crypto Index Fund tracks the performance of the top 30 crypto assets. The index methodology includes a 15% cap on any constituent. The top-30 list is regularly updated based on liquidity data (trading volume) and the availability of safe custody. According to the issuing company, it is considered the first index crypto fund in the European Union. The fund's assets are secured by a licensed institutional custodian with Lloyds syndicate insurance. The fund is operated under the well-established legal regulation of Luxembourg, the world’s second-biggest jurisdiction by volume of assets under management.
Crescent Crypto Asset Management is another leading company from the crypto index fund investing and benchmarking industry. The firm offers a variety of services and solutions, dedicated to meeting the needs of the digital asset industry and investment community. Among them is the Crescent Crypto Market Index (CCMIX) - a rules-based cryptocurrency market index that is designed to measure the performance of the largest and most liquid cryptocurrencies. The CCMIX began on December 31, 2016, and employs a trailing 90-day average market-cap-weighted selection methodology that represents approximately 85% of the investible cryptocurrency universe. The CCMIX determines a digital asset’s index eligibility considering several criteria, including liquidity, size, custody, security, etc.
BlockBay Capital's BlockWealth Lite is a fund offering broad exposure to the cryptocurrency market. It tracks the top 15 cryptoassets by market cap according to an index compiled by BlockBay. The index is rebalanced quarterly and follows a few simple rules. No one coin can comprise more than 30% of the portfolio, and at any given time, no more than two stablecoins may be included. BlockBay Capital is a Dutch cryptocurrency asset manager. Along with BlockWealth Lite, the firm offers BlockWealth, a portfolio split by investment themes (privacy coins, protocols, etc.) and BlockPro, a premium solution for high-net-worth individuals.