I'm not sure what to think of applying the concept of index funds to crypto. On one hand it's a great way to provide an investment vehicle to traditional investors. On the other hand it leads the concept of decentralized money at absurdum. But I guess that's mostly a question of personal preference and there's obviously a market for such a financial product.
Quite interesting. Not sure what to think of them rebalancing monthly though. That seems like an excessively long time frame for something as fast paced and volatile as crypto. It will be interesting to see how they fare in a bear market.
Topic: Crypto Index Fund - page 2. (Read 1573 times)
Although I like the idea, "weighted by market cap" is a bad measure.
I'm not sure though what would be a good way to select them. Also, small market cap coins tend to grow faster than coins with a large market cap. I can imagine different funds, some with small cap coins, some with large coins.
Of course, this year altcoins showed crazy increases, many went up 10,000% in a few months. If you have a fund that invests in 50 different coins, a few of those would lead to a very nice ROI. Especially at this point an index fund can safe you a lot of work, as it's an impossible task to safely invest in that many different coins on your own, and keep them in wallets under your control.
I would invest in a crypto index fund, if it's created by an established institution, not a random ICO where an anonymous person wants to be trusted with hundreds of millions of dollars.
I'm not sure though what would be a good way to select them. Also, small market cap coins tend to grow faster than coins with a large market cap. I can imagine different funds, some with small cap coins, some with large coins.
Of course, this year altcoins showed crazy increases, many went up 10,000% in a few months. If you have a fund that invests in 50 different coins, a few of those would lead to a very nice ROI. Especially at this point an index fund can safe you a lot of work, as it's an impossible task to safely invest in that many different coins on your own, and keep them in wallets under your control.
I would invest in a crypto index fund, if it's created by an established institution, not a random ICO where an anonymous person wants to be trusted with hundreds of millions of dollars.
You could have different funds in the crypto space, just like in equity.
Apart from large cap, mid cap and small cap funds, you can have thematic investments. One fund could invest in coins which have an anonymity theme. I think the first step is for an ETF to be established. Then you can have different fund variations.
I'd be curious the take of other Bitcoin Forum members -- I think a new cryptocurrency just to invest (like the ICO link) makes less sense to me than the approach that Bitwise is taking with it being an investment in the index fund -- what might be the advantages/disadvantages of an investment in the ICO vs an investment in the Bitwise Index Fund?
I want a crypto index fund.
It should be an index fund of the top X coins in terms of market cap, weighted by market cap. Perhaps use coinmarketcap.com to recalculate. I would be happy if X was any number over about 10. Now, this might catch some scams, but it will be self correcting. The primary advantage is the same advantage of index stock funds over actively managed stock funds.
Details tbd include whether the fund rebalances every day or every week or whatever, where to buy the coins that it would hold and where and how to trade to maintain the index-required holding percentages.
I have been looking/reading/watching for several weeks now and haven't found a passive coin index fund. It should exist and I would invest if it existed.
What do you think?
Edit: It appears cryptomover's index may be exactly what I want, but I think I read that U.S. investors are excluded.
It should be an index fund of the top X coins in terms of market cap, weighted by market cap. Perhaps use coinmarketcap.com to recalculate. I would be happy if X was any number over about 10. Now, this might catch some scams, but it will be self correcting. The primary advantage is the same advantage of index stock funds over actively managed stock funds.
Details tbd include whether the fund rebalances every day or every week or whatever, where to buy the coins that it would hold and where and how to trade to maintain the index-required holding percentages.
I have been looking/reading/watching for several weeks now and haven't found a passive coin index fund. It should exist and I would invest if it existed.
What do you think?
Edit: It appears cryptomover's index may be exactly what I want, but I think I read that U.S. investors are excluded.
There is an ICO on this now. It is call Crypto20. https://crypto20.com/en/
Go and see if this is what you wanted.
Although I like the idea, "weighted by market cap" is a bad measure.
I'm not sure though what would be a good way to select them. Also, small market cap coins tend to grow faster than coins with a large market cap. I can imagine different funds, some with small cap coins, some with large coins.
Of course, this year altcoins showed crazy increases, many went up 10,000% in a few months. If you have a fund that invests in 50 different coins, a few of those would lead to a very nice ROI. Especially at this point an index fund can safe you a lot of work, as it's an impossible task to safely invest in that many different coins on your own, and keep them in wallets under your control.
I would invest in a crypto index fund, if it's created by an established institution, not a random ICO where an anonymous person wants to be trusted with hundreds of millions of dollars.
I'm not sure though what would be a good way to select them. Also, small market cap coins tend to grow faster than coins with a large market cap. I can imagine different funds, some with small cap coins, some with large coins.
Of course, this year altcoins showed crazy increases, many went up 10,000% in a few months. If you have a fund that invests in 50 different coins, a few of those would lead to a very nice ROI. Especially at this point an index fund can safe you a lot of work, as it's an impossible task to safely invest in that many different coins on your own, and keep them in wallets under your control.
I would invest in a crypto index fund, if it's created by an established institution, not a random ICO where an anonymous person wants to be trusted with hundreds of millions of dollars.
I want a crypto index fund.
It should be an index fund of the top X coins in terms of market cap, weighted by market cap. Perhaps use coinmarketcap.com to recalculate. I would be happy if X was any number over about 10. Now, this might catch some scams, but it will be self correcting. The primary advantage is the same advantage of index stock funds over actively managed stock funds.
Details tbd include whether the fund rebalances every day or every week or whatever, where to buy the coins that it would hold and where and how to trade to maintain the index-required holding percentages.
I have been looking/reading/watching for several weeks now and haven't found a passive coin index fund. It should exist and I would invest if it existed.
What do you think?
Edit: It appears cryptomover's index may be exactly what I want, but I think I read that U.S. investors are excluded.
It should be an index fund of the top X coins in terms of market cap, weighted by market cap. Perhaps use coinmarketcap.com to recalculate. I would be happy if X was any number over about 10. Now, this might catch some scams, but it will be self correcting. The primary advantage is the same advantage of index stock funds over actively managed stock funds.
Details tbd include whether the fund rebalances every day or every week or whatever, where to buy the coins that it would hold and where and how to trade to maintain the index-required holding percentages.
I have been looking/reading/watching for several weeks now and haven't found a passive coin index fund. It should exist and I would invest if it existed.
What do you think?
Edit: It appears cryptomover's index may be exactly what I want, but I think I read that U.S. investors are excluded.
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