Back

Article

Invest easily in up to 10 cryptocurrencies with Virtune Crypto Top 10 Index ETP

article

Written by

Sofia Boström, Virtune

Published

2024-02-29

In the dynamic world of digital assets, Virtune Crypto Top 10 Index ETP presents a unique opportunity for investors. This Exchange-Traded Product (ETP) is not only an innovative way to gain exposure to the cryptocurrency market but also offers a secure and cost-effective way to access up to ten leading cryptocurrencies.


This product is listed on, among others, Nasdaq Stockholm and must therefore follow Nasdaq's regulations. This means that only cryptocurrencies that meet the criteria and are included in the Nasdaq Crypto Index ("NCI") can be part of Virtune Crypto Top 10 Index ETP. NCI includes four quality criteria, which include requirements for liquidity, and the Nasdaq Cryptocurrency Index Oversight Committee ("CIOC") has the right to exclude cryptocurrencies due to, for example, security risks or liquidity risks, even if all criteria are met. Read more about NCI here: https://indexes.nasdaqomx.com/docs/methodology_NCI.pdf. The Nasdaq Crypto Index is rebalanced quarterly, and new crypto assets can be included and existing crypto assets excluded, which changes the universe of crypto assets that Virtune Crypto Top 10 Index ETP must adhere to.


Benefits of Virtune Crypto Top 10 Index ETP


Rule-Governed Index Methodology


Virtune Crypto Top 10 Index ETP follows the Virtune Vinter Crypto Top 10 Index, which is a regulated index developed in collaboration with the Swedish crypto index provider Vinter, regulated under the Benchmark Regulation. The index includes a transparent, rule-governed methodology and additional criteria that each crypto asset must comply with to be included in the index. Read more here: https://methodology.vinter.co/virtune/vinter-virtune-crypto-indexes


Monthly rebalancing


Thanks to monthly rebalancing, the portfolio reflects the latest market trends, enabling an effective crypto allocation. In connection with the rebalancing that adjusts the holdings, new crypto assets can be included and existing crypto assets excluded. Maximum weight of 40% to promote diversification In connection with the rebalancing each month, a crypto asset can at most receive an allocation of 40% of the total portfolio. This means that if, for example, Ethereum has experienced a significant development from the previous rebalancing and reached a weight of 42%, this will be adjusted down to 40%. The purpose of a cap of 40% per crypto asset is to promote a diversified portfolio of crypto assets.


Diversification


Investors have the chance to spread their capital across various cryptocurrencies, which may reduce the risk compared to investing in a single cryptocurrency.


Growth potential


The cryptocurrency market is still in a relatively early stage and is expected to continue its significant growth in the coming years. Virtune Crypto Top 10 Index ETP offers investors the opportunity to benefit from this future growth. Virtune Crypto Top 10 Index ETP provides a unique combination of security, diversification, and growth potential. For investors looking to gain exposure to the cryptocurrency market without delving into technical details, this ETP represents an attractive and exciting opportunity.


Focus on security


Virtune always prioritizes security at an institutional level. With measures such as cold storage at Coinbase, cryptocurrencies are effectively protected against potential digital threats. Additionally, a Collateral Agent is in place to represent investors in case Virtune becomes insolvent.


Physically backed ETP


A unique feature of this product is that it is 100% physically backed. This means that each ETP unit is secured and directly linked with a corresponding share in the actual crypto assets that are being stored with our custodian Coinbase, providing a solid foundation and assurance for investors' capital. In other words, the 100% physical backing means that investors are not placing their capital in a synthetic product, which is associated with a higher credit risk to the issuer. Thanks to the aforementioned security measures along with the 100% physically backed ETP, the issuer credit risk is minimized.


Easy accessibility


One of the many advantages of VIR10SEK is its easy accessibility. The product can be easily traded through your existing bank or savings platform within an Investment Savings Account (ISK) or Capital insurance (“Kapitalförsäkring”), without the need to create a separate account for cryptocurrency trading.


Real-Time trading


Just like trading individual stocks, Virtune Crypto Top 10 Index ETP is always liquid and can be traded in real-time during Nasdaq Stockholm’s (“Stockholmsbörsens”) exchange opening hours. This provides flexibility and simplicity for investors who want to quickly react to market movements.