CRYPTO20: The First Tokenized Cryptocurrency Index Fund

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CRYPTO20: The First Tokenized Cryptocurrency Index Fund

2017 has definitely been the year of cryptocurrencies. I sensed a strong increase in news and on the streets you could easily find people talking about Bitcoin or the next amazing-will-make-you-reach ico. More and more people jumped on the wagon of cryptocurrency investment, often not even understanding the concepts behind them, and this helped pumping the value to new highs.

If you take Bitcoin, which is arguably the most famous coin, it passed from $997 on 1st Jan 2017 to $13860 on 31st December with a staggering peak of almost TWENTY thousand on the 16th December.

At the moment there are 1300+ cryptocurrency available and every day new ones pop up. The market is still very volatile and you can try your luck and invest in the next coin-star but what if you want an easy, no fuzz alternative that will give you exposure to different coins? Meet CRYPTO20: The First Tokenized Cryptocurrency Index Fund.

Launched on 16th October 2017 (ICO) it will hit the first exchange, hitBTC, on 15th Jan 2018 and many others will follow. The crypto fund had great performance so far and, at the moment of writing, the fund has a value of ca $158M.

Source: Crypto20

What does it all mean? Well, if you bought 10,000 tokens in October 2017 during the ico (at initial price of $0.95 each), you would today (Jan 2018) have $38,000! This number will definitely go up considering the boom in the cryptomarket. Another important element is the amazing community in Discord where you can ask questions or connect with fellow investors.

Low(er) volatility

CRYPTO20’s objective aims to track the cryptocurrency market index and by doing so it spreads the risk of investing in a single coin, giving you continue exposure to new coins and dropping the ones that are less performing.

This hybrid market-cap weighted portfolio basically trades with an index strategy similar to  ETFs, that is comprised of the top 20 cryptocurrencies by market capitalization, with weekly rebalancing. Assets are also capped at a maximum weighting of 10% (this prevents any asset from dominating the portfolio). The current distribution is shown below:

Source: Crypto20

Any Fees?

0.5% per year with no exit fees, no brokerage fees and no advice fees. This is quite convenient considering that most of the exchanges charge 0.1% per trade (hence times 52) PLUS a variable fee every time you want to withdraw/transfer your coins.

Conclusion

CRYPTO20 is an easy way to invest in cryptocurriencies and, although it might not give you the astonishing gains that single coins such as Ripple had lately, its performance remain higher than many other coins and offers a diversified portfolio without the cost and hassle to buy/sell every week. If you like ETFs, you´ll love it. Will you jump on the wagon?

By | 2018-01-04T16:51:49+00:00 January 4th, 2018|Investing, Make Extra Money|Comments Off on CRYPTO20: The First Tokenized Cryptocurrency Index Fund

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