The cryptocurrency market has become extremely complex and with more and more coins, ICOs, tokens, products and services coming up every week, the average person can definitely become perplexed as to what to buy, when to sell and which currencies to hold.
To the rescue comes Crypto20, the first tokenized crypto-only index fund. The index fund allows investors to have exposure to exactly 20 different cryptocurrencies of their choice. For this to happen, each user should own only one C20 token and they immediately own the diversification and exposure to 20 digital currencies. The C20 is and will be traded on certain crypto exchanges for investors to buy.
According to The Merkle, the index fund is currently valued at around $84 million, with strong expectations that the appetite of investors for C20 will rise and, consequently, the valuation of the index fund.
As of today, some of the 20 digital currencies include Bitcoin, Ethereum, Litecoin, Monero, Cardano and Bitcoin Cash. Overall, the top twenty cryptocurrencies by market cap are included. In addition, the following exchanges already offer the C20 token: Bibox, IDEX, HitBTC and EtherDelta. According to their website, CoinExchange.io and YoBit.net are currently “pending” and will soon offer the C20 token, as well.
As reported by press and The Merkle, given that market cap rankings fluctuate every now and then, Crypto20’s positions in specific coins will change accordingly. Additionally, if coins drop out of the top 20, the fund will change its portfolio accordingly. It is an autonomous token-as-a-fund which charges no broker or exit fees and doesn’t require any minimum investment. Moreover, users control their assets at all times with full transparency.
The major advantages of owning C20 token is clearly the time-saving and transparency that the token offers. The more tokens one owns, the greater they are exposed to either the profits or the losses of the whole fund.