Advertisement
Zerocap and CoinDesk Indices Unveil Australia’s First CoinDesk 20 Index-Based Crypto Products
- The CoinDesk 20 Index is launching in Australia through Zerocap with a diverse portfolio allocation of 27.4% Bitcoin, 19.1% XRP and 16% Ethereum while excluding memecoins and other specialised tokens.
- The index, which has gained 456% over five years, provides institutional investors with broader market exposure through quarterly rebalancing.
- Despite its strategic diversification benefits, the index faces current market headwinds with a 2.5% decline amid broader crypto market struggles and memecoin concerns.
Don’t like to buy/store/sell crypto yourself and prefer a more hands-off approach? Australian investors will soon have more options than buying exchange-traded funds (ETFs) with the addition of the CoinDesk 20 Index.
The index will be launched in conjunction with Melbourne-based Zerocap and crypto publication CoinDesk.
Related: Money Laundering Crackdown: AUSTRAC Puts 50 Firms, Including Crypto Exchanges, On Notice
The index “captures 90% of the digital asset market” but excludes memecoins, privacy tokens, wrapped, staked and pegged assets as well as gas tokens.
Index a Move Away from Standard BTC/ETH Split
As per the latest data, the 20 assets include a 27.4% stake in Bitcoin, 19.1% in XRP and 16% in Ethereum.
It is subject to quarterly reconstitution and rebalancing and as of February 2, the total volume of linked products was US$13 billion (AU$20.45 billion).
A press release said the Australian launch is a major boost to the local investment scene, “offering advanced indexed investment strategies traditionally seen only in conventional finance”.
The index offers an alternative to traditional exposure – which typically focuses on Bitcoin and Ethereum – by including a broader range of cryptocurrencies.
The CoinDesk 20 Index, which has surged 456% over the past five years, provides a compelling alternative to the standard 70/30 BTC/ETH split, broadening exposure to other leading crypto assets.
Zerocap and CoinDesk
Index Slips with Broader Market Downturn
Mark Hiriart, Head of Sales at Zerocap commented:
This partnership with CoinDesk Indices brings sophisticated, structured options to the crypto market for the first time, offering our clients enhanced ways to invest in digital assets with tailored risk and diversification benefits.
Mark Hiriart, Head of Sales at Zerocap Alan Campbell, President of CoinDesk Indices added that the index caters to the growing demand for “diversified digital assets exposure”, adding that specifically institutional investors can now gain access to cryptocurrencies beyond the usual big two (BTC and ETH).
Related: Grayscale Launches Pyth Network Fund as Demand for Crypto Investments Surges
The CoinDesk 20 Index currently trades for US$3,153.01 (AU$4,953.74), down 2.5% today. As per the latest update only Bitcoin and Litecoin are trading in green territory, with most other lead assets down by around 2-3%.
Overall, the crypto market is in a phase of decline on broader macroeconomic developments and traders’ weariness due to ongoing concerns over memecoin fraud.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
