暗号通貨インデックスファンド: それは何ですか?目次
暗号通貨インデックスファンド: それは何ですか?
By CoinUnited
7 Feb 2023
The digital asset market may be diversified at a lesser cost thanks to cryptocurrency index funds.
It was in August of 1976 that Vanguard's founder, John Bogle, introduced the first index fund to the general investing public in the United States. With the primary objective of enabling individual investors to invest at a low cost, the Vanguard First Index Investment Trust was established to track the performance of the S&P 500, a stock market index that includes the 500 biggest public businesses in the United States.
Index funds have become quite popular since that time. At $8.53 trillion, passive index funds have more assets under management than actively managed funds do as of March 2022.
Both traditional and crypto-native investors are quickly warming up to cryptocurrency index funds as a novel and interesting method to obtain exposure to the digital asset market.
This article will examine the advantages and disadvantages of the most well-known cryptocurrency index funds now on the market, as well as provide a basic overview of how these funds function, so that you may make a more educated investment choice.
The S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 3000 are just a few examples of the financial market benchmarks that index funds often follow.
Common types of index funds include mutual funds and ETFs (ETFs). Professional fund managers oversee the operations of mutual funds, which investors can purchase and sell through a brokerage house. Exchange-Traded Funds (ETFs) are similar to mutual funds, except they are traded on stock exchanges like stocks.
When compared to actively managed mutual funds, index funds give investors a low-cost alternative to investing. This is due to the passive investing method adopted by index funds, which leads to reduced overhead. This means that the expense ratios of classic index funds are often lower.
Putting your money into a classic index fund is a straightforward approach to acquire diversified exposure to a market or industry, with the potential for returns that closely mirror the benchmark index.
An important aspect of index funds is that they are not intended to generate higher returns than the index they follow, but rather to replicate the index's performance as precisely as possible.
Similar to how traditional index funds expose investors to a basket of equities, cryptocurrency index funds do the same for a basket of digital currencies.
The performance of a benchmark index, such as a particular cryptocurrency sector (e.g., a cryptocurrency index fund), is tracked by these funds.
Ethereum, The key distinction between cryptocurrency index funds and more typical index funds is the assets they choose to invest in. Unlike traditional index funds, which invest in equities, bonds, and other "traditional" financial assets, cryptocurrency index funds invest exclusively in cryptocurrencies like Bitcoin BNB and others.
Index funds are a well-established financial medium, whereas cryptocurrency option funds are still relatively new. When compared to the cryptocurrency, which is regulated differently across countries, traditional index funds are subject to far more stringent oversight.
Rather than investing in individual assets, cryptocurrency index funds invest in a basket of many cryptocurrencies.
The goal of the fund is to replicate the performance of an index benchmark, such as the top 10 or 20 cryptocurrencies by market capitalization. To guarantee that the fund composition closely matches the benchmark, the percentage of assets held in the fund is typically weighted by market capitalization and rebalanced on a regular basis.
Rather than picking and choosing specific assets, investors may acquire exposure to a diverse range of coins and tokens by purchasing an index fund.
Professional fund managers choose which assets to hold in an index fund's portfolio in order to keep it in line with the index they're monitoring and choose when to re-balance the fund.
The costs connected with cryptocurrency index funds might vary widely. Most noteworthy, however, are the performance fees, expense ratio, and management fees.
The fund manager will charge a management fee, which is deducted from the fund's total assets, to cover the costs associated with operating and managing the fund. The fund manager will charge a management fee, which is commonly expressed as a percentage of the fund's assets, for managing and operating the fund. To illustrate, if the management charge of a certain fund is 1% each year, and you invest $100,000 in that fund, your annual management cost will be $1,000. Ratio of Expenses: As a proportion of the fund's total assets, this represents the fund's operational expenses. It includes everything from the fund's management charge to its administrative expenditures to any additional fees incurred in the course of administering the fund.
As a proportion of the fund's assets, this represents the entire cost of operating the fund. It includes everything from management fees to administrative charges and more that goes into keeping the fund operational. Some funds impose a performance fee, which is a percentage of the fund's gains over a certain benchmark.
Index funds for cryptocurrencies relieve investors of the time-consuming task of comparing and selecting among a wide range of cryptocurrencies.
The majority of cryptocurrency index funds invest solely in digital assets that may be traded directly on the blockchain, including cryptocurrencies, utility and governance tokens, NFTs, and on-chain derivatives. Traditional funds, on the other hand, give investors a chance to profit from increases or decreases in the stock prices of cryptocurrency and blockchain companies including mining firms, exchanges, hardware makers, and infrastructure providers.
Depending on how investors access them, cryptocurrency index funds can be classified as "off-chain" or "on-chain."
Off-chain index funds are now by far the most popular and only contain index funds that are exchanged through an asset management business, whereas on-chain index funds are managed through smart contracts, and the index fund tokens are often traded on DeFi platforms.
Traditional investors like cryptocurrency index funds because they are an easy method to obtain exposure to the market action of cryptocurrencies and crypto firms without the complexities of buying and storing digital assets themselves.
Low Minimum Investment: A lot of cryptocurrency index funds feature a low or no minimum investment amount. Because of this, they may be appealing to those who are just starting out or who want to invest a little amount of capital on a monthly basis.
There are a variety of cryptocurrency index funds that have very low entry barriers or none at all. This might be appealing to people just starting out with a portfolio or wishing to routinely invest modest sums of capital (such as, for example). Simpler: Cryptocurrency index funds may appeal to people who prefer a hands-off or simple investment strategy since they eliminate the human labor needed in protecting, storing, and maintaining coins.
Investors who would rather not deal with the hassle of protecting, storing, and maintaining cryptocurrency may find cryptocurrency index funds appealing. One-Shot Diversification: Cryptocurrency Index Funds Offer Price Exposure to Dozens or Hundreds of Crypto Assets in a Single Investment Vehicle This greatly simplifies the process of diversification inside crypto.
In a single investing vehicle, cryptocurrency index funds offer price exposure to dozens or even hundreds of crypto assets. This facilitates crypto portfolio diversification. Investing in a cryptocurrency index fund is more cost-effective than buying, storing, and managing several individual cryptocurrencies since the fund consolidates all of these tasks into a single, streamlined process.
This can cause large price swings in cryptocurrency index funds over relatively short periods of time, exposing investors to substantial risk of loss.
As a result, cryptocurrency index funds' values can swing widely over very short periods of time, exposing investors to substantial risk of loss. There is a greater chance of fraud or mismanagement occurring in cryptocurrency index funds since they may not be subject to the same level of monitoring as regular investment funds.
The danger of fraud or mismanagement is magnified in cryptocurrency index funds because they may not be subject to the same level of monitoring as regular investment funds. Liquidity issues: It may be difficult to purchase or sell shares of some cryptocurrency index funds due to low trading volume and associated high slippage.
Investors may get a piece of the cryptocurrency market by purchasing shares in a cryptocurrency index fund or a cryptocurrency mutual fund.
Mutual funds are actively managed by a fund manager who choose which assets to invest in, whereas index funds invest in a basket of cryptocurrencies weighted in a way that mimics the composition of a certain cryptocurrency market index.
This may involve determining the portfolio's make-up and asset allocation, as well as the timing of investments and the use of risk management strategies. This distinguishes them from crypto index funds, which are passively managed, earning them the label of "actively managed."
Although the total number of cryptocurrency index funds is still rather modest, there are a few solid options that focus on certain crypto markets or investment approaches.
This index fund, known as the Bitwise 10 Large Cap Crypto Index Fund, holds the ten largest cryptocurrencies by market capitalization.
The ten biggest cryptocurrencies by market cap are included in this index fund. The performance of global corporations with considerable exposure to blockchain technology is tracked by the CoinShares Blockchain Global Equity Index.
Grayscale Bitcoin Trust is an index fund that primarily holds Bitcoin but may eventually hold other cryptocurrencies.
Although more cryptocurrencies may be added in the future, this index fund now only holds Bitcoin. With a focus on the best achievers in the market, the Galaxy Crypto Index Fund invests in a wide range of cryptocurrencies.
This index fund invests in a wide range of cryptocurrencies, with a particular emphasis on the market leaders. The most widely used Ethereum-based decentralized finance (DeFi) protocols and currencies are tracked by the DeFi Pulse Index (DPI).
There is a wide range of cryptocurrency index funds available, each with its own set of tracking assets, rebalancing methodology, participation restrictions, fees, and more.
Here you will find information regarding tokens for index funds.
Cryptocurrency index funds, in contrast to conventional cryptocurrencies, are rarely traded on traditional cryptocurrency exchanges, also known as centralized exchanges (CEXs) or decentralized exchanges (DEXs) ( DEXs ).
Bitwise: Provides a number of low-cost index funds that follow the largest crypto market capitalization, with a wide range of investing possibilities and a wide variety of portfolio types.
Provides investors with low-cost index funds that follow the largest cryptocurrency market capitalization, offering a wide range of investment alternatives and portfolio diversification. With a simple interface and low fees, ICONOMI is a platform that provides index funds based on a basket of cryptocurrencies weighted by market cap.
Offering index funds based on a market cap-weighted basket of cryptocurrencies, the platform prides itself on its straightforward design and low costs. Low management costs and a diversified portfolio are just two of the many benefits of Coinshares' index funds, which follow the largest cryptocurrency market capitalization. Provides an additional layer of security by backing money with tangible assets.
Index funds offered by Coinshares follow the largest crypto markets and provide low management costs and a wide range of investment options. Provides an additional layer of security by backing money with tangible assets. Bitfund: Bitfund's index funds monitor the performance of the major cryptocurrencies by market capitalization and are based on a basket of cryptocurrencies. One of its best qualities is the low cost of its management.
The performance of the leading cryptocurrencies by market capitalization is tracked by Bitfund's index funds, which are based on a basket of cryptocurrencies. One of its selling points is its low management costs. Index funds that follow the biggest crypto market capitalization are offered by Fidelity, a reputable platform. As if its stellar reputation weren't enough, it also offers trading and custody services.
Index funds monitoring the biggest crypto market capitalization are offered via a reputable platform. It also offers trading and custody services, for which it has earned a solid reputation. Uniswap: On-chain crypto index funds like the DeFi Pulse Index may be purchased directly on DeFi platforms, with DPI having the highest liquidity.
Direct purchases of on-chain crypto index funds like the DeFi Pulse Index are available on DeFi platforms, with Uniswap offering the most liquidity for DPI.
No financial advice is offered or implied in this article.
It was in August of 1976 that Vanguard's founder, John Bogle, introduced the first index fund to the general investing public in the United States. With the primary objective of enabling individual investors to invest at a low cost, the Vanguard First Index Investment Trust was established to track the performance of the S&P 500, a stock market index that includes the 500 biggest public businesses in the United States.
Index funds have become quite popular since that time. At $8.53 trillion, passive index funds have more assets under management than actively managed funds do as of March 2022.
Both traditional and crypto-native investors are quickly warming up to cryptocurrency index funds as a novel and interesting method to obtain exposure to the digital asset market.
This article will examine the advantages and disadvantages of the most well-known cryptocurrency index funds now on the market, as well as provide a basic overview of how these funds function, so that you may make a more educated investment choice.
In other words, what do "traditional index funds" consist of?
The S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 3000 are just a few examples of the financial market benchmarks that index funds often follow.
Common types of index funds include mutual funds and ETFs (ETFs). Professional fund managers oversee the operations of mutual funds, which investors can purchase and sell through a brokerage house. Exchange-Traded Funds (ETFs) are similar to mutual funds, except they are traded on stock exchanges like stocks.
When compared to actively managed mutual funds, index funds give investors a low-cost alternative to investing. This is due to the passive investing method adopted by index funds, which leads to reduced overhead. This means that the expense ratios of classic index funds are often lower.
Putting your money into a classic index fund is a straightforward approach to acquire diversified exposure to a market or industry, with the potential for returns that closely mirror the benchmark index.
An important aspect of index funds is that they are not intended to generate higher returns than the index they follow, but rather to replicate the index's performance as precisely as possible.
Index funds for cryptocurrencies: what are they?
Similar to how traditional index funds expose investors to a basket of equities, cryptocurrency index funds do the same for a basket of digital currencies.
The performance of a benchmark index, such as a particular cryptocurrency sector (e.g., a cryptocurrency index fund), is tracked by these funds.
Ethereum, The key distinction between cryptocurrency index funds and more typical index funds is the assets they choose to invest in. Unlike traditional index funds, which invest in equities, bonds, and other "traditional" financial assets, cryptocurrency index funds invest exclusively in cryptocurrencies like Bitcoin BNB and others.
Index funds are a well-established financial medium, whereas cryptocurrency option funds are still relatively new. When compared to the cryptocurrency, which is regulated differently across countries, traditional index funds are subject to far more stringent oversight.
What is the function of crypto index funds?
Rather than investing in individual assets, cryptocurrency index funds invest in a basket of many cryptocurrencies.
The goal of the fund is to replicate the performance of an index benchmark, such as the top 10 or 20 cryptocurrencies by market capitalization. To guarantee that the fund composition closely matches the benchmark, the percentage of assets held in the fund is typically weighted by market capitalization and rebalanced on a regular basis.
Rather than picking and choosing specific assets, investors may acquire exposure to a diverse range of coins and tokens by purchasing an index fund.
Professional fund managers choose which assets to hold in an index fund's portfolio in order to keep it in line with the index they're monitoring and choose when to re-balance the fund.
The costs connected with cryptocurrency index funds might vary widely. Most noteworthy, however, are the performance fees, expense ratio, and management fees.
The fund manager will charge a management fee, which is deducted from the fund's total assets, to cover the costs associated with operating and managing the fund. The fund manager will charge a management fee, which is commonly expressed as a percentage of the fund's assets, for managing and operating the fund. To illustrate, if the management charge of a certain fund is 1% each year, and you invest $100,000 in that fund, your annual management cost will be $1,000. Ratio of Expenses: As a proportion of the fund's total assets, this represents the fund's operational expenses. It includes everything from the fund's management charge to its administrative expenditures to any additional fees incurred in the course of administering the fund.
As a proportion of the fund's assets, this represents the entire cost of operating the fund. It includes everything from management fees to administrative charges and more that goes into keeping the fund operational. Some funds impose a performance fee, which is a percentage of the fund's gains over a certain benchmark.
Index funds for cryptocurrencies relieve investors of the time-consuming task of comparing and selecting among a wide range of cryptocurrencies.
The majority of cryptocurrency index funds invest solely in digital assets that may be traded directly on the blockchain, including cryptocurrencies, utility and governance tokens, NFTs, and on-chain derivatives. Traditional funds, on the other hand, give investors a chance to profit from increases or decreases in the stock prices of cryptocurrency and blockchain companies including mining firms, exchanges, hardware makers, and infrastructure providers.
Depending on how investors access them, cryptocurrency index funds can be classified as "off-chain" or "on-chain."
Off-chain index funds are now by far the most popular and only contain index funds that are exchanged through an asset management business, whereas on-chain index funds are managed through smart contracts, and the index fund tokens are often traded on DeFi platforms.
Benefits and Drawbacks of Index Funds for Cryptocurrencies
Traditional investors like cryptocurrency index funds because they are an easy method to obtain exposure to the market action of cryptocurrencies and crypto firms without the complexities of buying and storing digital assets themselves.
Low Minimum Investment: A lot of cryptocurrency index funds feature a low or no minimum investment amount. Because of this, they may be appealing to those who are just starting out or who want to invest a little amount of capital on a monthly basis.
There are a variety of cryptocurrency index funds that have very low entry barriers or none at all. This might be appealing to people just starting out with a portfolio or wishing to routinely invest modest sums of capital (such as, for example). Simpler: Cryptocurrency index funds may appeal to people who prefer a hands-off or simple investment strategy since they eliminate the human labor needed in protecting, storing, and maintaining coins.
Investors who would rather not deal with the hassle of protecting, storing, and maintaining cryptocurrency may find cryptocurrency index funds appealing. One-Shot Diversification: Cryptocurrency Index Funds Offer Price Exposure to Dozens or Hundreds of Crypto Assets in a Single Investment Vehicle This greatly simplifies the process of diversification inside crypto.
In a single investing vehicle, cryptocurrency index funds offer price exposure to dozens or even hundreds of crypto assets. This facilitates crypto portfolio diversification. Investing in a cryptocurrency index fund is more cost-effective than buying, storing, and managing several individual cryptocurrencies since the fund consolidates all of these tasks into a single, streamlined process.
This can cause large price swings in cryptocurrency index funds over relatively short periods of time, exposing investors to substantial risk of loss.
As a result, cryptocurrency index funds' values can swing widely over very short periods of time, exposing investors to substantial risk of loss. There is a greater chance of fraud or mismanagement occurring in cryptocurrency index funds since they may not be subject to the same level of monitoring as regular investment funds.
The danger of fraud or mismanagement is magnified in cryptocurrency index funds because they may not be subject to the same level of monitoring as regular investment funds. Liquidity issues: It may be difficult to purchase or sell shares of some cryptocurrency index funds due to low trading volume and associated high slippage.
Index Funds vs. Mutual Funds for Cryptocurrencies
Investors may get a piece of the cryptocurrency market by purchasing shares in a cryptocurrency index fund or a cryptocurrency mutual fund.
Mutual funds are actively managed by a fund manager who choose which assets to invest in, whereas index funds invest in a basket of cryptocurrencies weighted in a way that mimics the composition of a certain cryptocurrency market index.
This may involve determining the portfolio's make-up and asset allocation, as well as the timing of investments and the use of risk management strategies. This distinguishes them from crypto index funds, which are passively managed, earning them the label of "actively managed."
Popular Cryptocurrency Index Funds
Although the total number of cryptocurrency index funds is still rather modest, there are a few solid options that focus on certain crypto markets or investment approaches.
This index fund, known as the Bitwise 10 Large Cap Crypto Index Fund, holds the ten largest cryptocurrencies by market capitalization.
The ten biggest cryptocurrencies by market cap are included in this index fund. The performance of global corporations with considerable exposure to blockchain technology is tracked by the CoinShares Blockchain Global Equity Index.
Grayscale Bitcoin Trust is an index fund that primarily holds Bitcoin but may eventually hold other cryptocurrencies.
Although more cryptocurrencies may be added in the future, this index fund now only holds Bitcoin. With a focus on the best achievers in the market, the Galaxy Crypto Index Fund invests in a wide range of cryptocurrencies.
This index fund invests in a wide range of cryptocurrencies, with a particular emphasis on the market leaders. The most widely used Ethereum-based decentralized finance (DeFi) protocols and currencies are tracked by the DeFi Pulse Index (DPI).
There is a wide range of cryptocurrency index funds available, each with its own set of tracking assets, rebalancing methodology, participation restrictions, fees, and more.
Here you will find information regarding tokens for index funds.
Cryptocurrency index funds, in contrast to conventional cryptocurrencies, are rarely traded on traditional cryptocurrency exchanges, also known as centralized exchanges (CEXs) or decentralized exchanges (DEXs) ( DEXs ).
Bitwise: Provides a number of low-cost index funds that follow the largest crypto market capitalization, with a wide range of investing possibilities and a wide variety of portfolio types.
Provides investors with low-cost index funds that follow the largest cryptocurrency market capitalization, offering a wide range of investment alternatives and portfolio diversification. With a simple interface and low fees, ICONOMI is a platform that provides index funds based on a basket of cryptocurrencies weighted by market cap.
Offering index funds based on a market cap-weighted basket of cryptocurrencies, the platform prides itself on its straightforward design and low costs. Low management costs and a diversified portfolio are just two of the many benefits of Coinshares' index funds, which follow the largest cryptocurrency market capitalization. Provides an additional layer of security by backing money with tangible assets.
Index funds offered by Coinshares follow the largest crypto markets and provide low management costs and a wide range of investment options. Provides an additional layer of security by backing money with tangible assets. Bitfund: Bitfund's index funds monitor the performance of the major cryptocurrencies by market capitalization and are based on a basket of cryptocurrencies. One of its best qualities is the low cost of its management.
The performance of the leading cryptocurrencies by market capitalization is tracked by Bitfund's index funds, which are based on a basket of cryptocurrencies. One of its selling points is its low management costs. Index funds that follow the biggest crypto market capitalization are offered by Fidelity, a reputable platform. As if its stellar reputation weren't enough, it also offers trading and custody services.
Index funds monitoring the biggest crypto market capitalization are offered via a reputable platform. It also offers trading and custody services, for which it has earned a solid reputation. Uniswap: On-chain crypto index funds like the DeFi Pulse Index may be purchased directly on DeFi platforms, with DPI having the highest liquidity.
Direct purchases of on-chain crypto index funds like the DeFi Pulse Index are available on DeFi platforms, with Uniswap offering the most liquidity for DPI.
No financial advice is offered or implied in this article.
