The best cryptocurrency exchange traded funds

Endy Callahan

Cryptocurrency index funds allow you to successfully and effectively invest in digital money and reduce potential risks. Today, there are dozens of similar organizations and tools. Choosing the most appropriate one is not always easy. Let's look at and analyze good tools.

Overview of the best cryptocurrency index funds

Coinbase Index Fund

This index Fund was launched by the cryptocurrency trading platform Coinbase in 2018. It can only be used by accredited investors, and the amount of investment must be at least a quarter of a million dollars. The company charges 1% for its services.

The Coinbase index includes the following coins: 

  • Bitcoin
  • Ethereum
  • Bitcoin Cash
  • Litecoin
  • Ethereum Classic

According to the company, the yield index bypassed bitcoin. In the article "How does a cryptocurrency index Fund work?" you can read about the principles of operation of the tool.

Bitwise Asset Management

The Fund began to exist in 2017. Its portfolio includes ten leading cryptocurrencies in terms of 5-year blurred market capitalization. Calculations were made on the basis of reports. The company makes adjustments to the portfolio every month. Based on its data, it is stored offline.

The company offers its clients several sets of cryptographic currencies:

  • 10 Index Offshore Fund
  • 10 Private Index Fund
  • Digital Asset Index Fund

Iconomi

A special feature of the Fund is the absence of an entrance barrier. This means that it is available to every investor. The Fund uses the digital assets of the second number and service tokens. The depositor can choose an acceptable level of risk: low, medium, or high.

Other cryptocurrency index funds

Crypto20

The Fund offers its own C20 token. Non-accredited investors from different countries of the world can take part in it. The index takes into account the top twenty coins by capitalization, while the share of each coin in the portfolio can not exceed 10%. This policy is aimed at reducing risks.

Once a week, the Fund rebalances. To determine the market capitalization, Crypto20 uses the number of coins in circulation, which are multiplied by the value of C20. Now operations with the token can be performed on the HitBTC and P2PB2B exchanges.

The crypto20 correlation coefficient is lower compared to other indices. This is due to the fact that the C20 token does not always meet the net asset value of the coins that are represented in the portfolio.

HODL10

The HODL10 index is built into the HodlBot tool. It is used on the Binance crypto exchange for automated trading. Operations are performed on the basis of index information. It is available to non-accredited investors without reference to citizenship.

The index is calculated on 10 coins with the largest market capitalization. Data is taken for a specific day and an exponentially weighted moving average is taken into account. This approach reduces the volatility of different days. Rebalancing is performed every 28 days. You can change this setting at your own discretion.

Many investors have appreciated cryptocurrency index funds and their main advantages. Some tools do not have a threshold for entry. We recommend that you try to make an investment in them. You don't have to have a large sum to do this.