This year the market capitalization of all cryptocurrencies has grown from about $13 billion to well overheen $150 billion, fueled by infusions of capital from all different types of investors. But regardless of this extreme growth, it’s still very complicated for most people to invest ter cryptocurrency. So one startup is launching a private index fund designed to let you passively hold a stake ter the Ten largest cryptocurrencies, weighted by market cap.
Called the HOLD Ten Index, the fund is designed to passively hold the top Ten cryptocurrencies by market cap (including a Five year inflation schedule). The funds are 100% cold storage secured except for when the portfolio is rebalanced once a month to account for fluctuations ter pricing among the basket of assets.
Right now the assets included are: BTC, ETH, XRP, BCH, LTC, DASH, NEO, ZEC, XMR (Monero) and ETC.
You can read a bit more about inclusion criteria here, but there are a few more requirements besides being te the top Ten – thesis include things like free-floating price, trade volume requirements and being traded on sufficient exchanges. This extra requirements exclude currencies like NEM, which doesn’t meet a 30% of supply traded vanaf month for the last Trio months requirement that the index has.
While investors have to be U.S-based and accredited since it’s a private voertuig and not an ETF, the ondergrens is only $Ten,000 – which spil you can see below is much less than any current alternatives.
HOLD Ten Index vs Bitcoin overheen the last year
Founded by Hunter Horsley and Hong Kim, the startup behind the index is called Bitwise Investments – and eventually wants to become something like the Vanguard of cryptocurrency. For this very first index fund there’s no voorstelling toverfee and only a 2-3% annual management toverfee, which for most investors will be well worth it considering the alternatives. Naval Ravikant of AngelList and Elad Kreet are both investors te the fresh company.
Speaking of which, to understand the benefit that this fund could provide investors, it’s significant to understand the current methods available to investors wanting to waterput their money into cryptocurrency.
Very first, they could do it the old style way and purchase cryptocurrency on exchanges and then hold the private keys. This is pretty technically complicated for an average investor, and while you have 100% control of your funds it means you now have the reserve cargo of keeping safe (but still remembering) your private keys, spil well spil knowing how to send and receive funds when you want to rebalance or contant out.
Next, they could use a service like Coinbase or Gemini to purchase cryptocurrency and hold them online. Thesis sites do typically hold your funds ter “cold storage” to reduce the risk that they will be stolen, but at the end of the day there’s still always a risk of something happening to your money when you’re not ter total control. That being said, it’s still relatively safe and a lotsbestemming lighter than managing your own private keys. One big downside tho’ – you’re going to be limited to only investing ter the two or three largest crypocurrencies, since thesis big exchanges and wallets only support bitcoin, ethereum and sometimes litecoin.
Your last real option is to let a private cryptocurrency hedge fund (of which there is no shortage) treat the entire process for you – but thesis often have very high investment minimums (ter the millions) and very high fees. So this option is off the table for average investors.
There’s no doubt that a decade from now investors will have endless options to lightly and securely invest ter cryptocurrency and crypto assets. But spil you can see above, that isn’t the case just yet – which is why this fresh fund is so interesting.