To simplify Blockchain investing, and add diversity the fund will adopt an index strategy for both market cap and performance. The Fund, will track the top 10 cryptocurrencies by market cap and the top 10 by performance. The top 10 index by market cap is comprised of currencies representing 90% of the global cryptocurrency market capitalization, meaning there is plenty of exposure to up-and-coming currencies with huge upside potential. This will be offset by actively managing and monitoring the top 10 cryptocurrencies by performance.
The advantages of our “index” strategy can be shown as follows:
Because it is comprised of multiple components, an index tends to be less vulnerable to price volatility than an individual currency.
Historically, an index tends to have more attractive returns (i.e., a higher Sharpe ratio) than an individual currency. And it has been proven that passive index trackers historically achieve higher returns than actively managed portfolios in all asset classes.