Investing Cryptocurrency Indexes and Funds

If you want to invest in the Cryptocurrency industry and not bet on a single coin, then investing in Cryptocurrency funds is probably your best bet.

Wow! 2 weeks ago I wrote about Cryptocurrencies as Bitcoin was approaching $10,000 and now it’s sky rocketed past that as high as $19,000 and now currently at about $16,800!  What a wild ride for those that are invested in cryptos!

What are Cryptocurrency Funds?

They are a collection of cryptocurrency coins sold as a single entity allowing investors to invest in several coins by just buying one thing.  2 weeks ago I was interested in investing in such a fund so I’ve done some research and found a few to talk about.

First a note of caution

As of this writing, all these funds are very new, many companies are unregulated and/or outside the country, and millions of dollars worth of cryptocurrencies have been lost/stolen at various turns of this crazy roller coaster ride.  So, I wouldn’t recommend doing anything you can’t handle.  I am writing about a few funds that i’m interested in, but I do not know their reliability, ethics, or efficacy.

Hold10 Fund

Hold10 is a passively managed fund by Bitwise Investments, who look like a pretty solid team in the US.  Hold10 will hold the top 10 cryptos by market cap using a weighted average.  You can checkout their portfolio to see their current asset percentages.  Their fees looks to be at 2.5% (annually) which is pretty high for a passively invested fund, but the industry is hot, exchange rates can be pricey.  I have requested an invite, but haven’t heard back. On their signup page it mentions “Investment is currently limited to U.S. accredited investors with a $25,000 minimum. “

The Token Fund

The Token Fund is open now for registration and you can see their portfolio holdings which are updated live on google sheets whenever there is a rebalancing.  I have signed up and waiting for verification which they said can take 2 days.  Their fee system is a bit strange as there is an entrance fee of 5% to buy “tokens” which represent shares backed by their portfolio.  There is also a 5% fee on exiting the fund.  Those are some pretty steep feeds, but there are no mention of fees holding the tokens.  So a long hold might be worth it.

Crypto20

Crypto20 is a fund holding the top 20 cryptos by market cap.  Even though it’s weighed by market cap, each coin is maxed at 10% of the portfolio for diversity and probably loss prevention. The portfolio of their holdings is on their homepage and they rebalance once a week. I don’t really like the 10% cap as it seems to artificially hold back the winners, but I don’t have the stats to prove it.  They are closed currently to the public, but opening up again sometime in January 2018.  I am very interested in this one as their fees are supposed to be 0.5% annually.

Satoshi Fund

Satoshi Fund is another token based fund similar to The Token Fund. They have a 5% entrance and exit fee.  I think both The Token Fund and Satoshi Fund is run by Russians and maybe this is how they do their fees over there. You can invest in getting a piece of the Satoshi Pie and view their portfolio.

Cryptocurrencies Index 30 (CCI30)

The CCI30 is just an index, but I thought Id mention it here for people who want to see the cryptos industry as a whole.

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