- Uniswap (UNI) makes up a third of the index, while Aave (AAVE), SushiSwap (SUSHI), and Loopring (LRC) each exceed 10%.
- Compass Financial Technologies plans to launch thematic, volatility, options-based and multi-asset indices in 2022
A Swiss index provider has launched an index offering exposure to 10 DeFi tokens as crypto investment vehicles continue to proliferate.
Compass Financial TechnologiesThe indices have around $5 billion in assets and are tracked by ETPs across Europe.
The appetite for exposure to digital assets through institutional-grade solutions is growing significantly, CEO Guillaume Le Fur told Blockworks.
“We have clearly identified the DeFi (theme) as one of the fastest growing sectors in the crypto industry, and the index is designed to provide broad and dynamic exposure to this sector,” said The Fur.
The index is the first institutional product of its kind that determines weightings by tracking token liquidity and revenue produced by DeFi (decentralized finance) protocols via on-chain data, according to the company.
The largest allocation is to Uniswap (UNI), with a weighting of around 33%. Aave (AAVE), SushiSwap (SUSHI) and Loopring (LRC) each exceed 10%.
The index may be used under a licensing agreement by issuers in any country, subject to local regulations. It complies with the European regulation on benchmarks and is online on Bloomberg, as well as on Refinitiv.
The launch comes as crypto offerings continue to expand. are increasing in Europe.
Compass partnered with CoinShares in June 2020 to create the CoinShares Gold and Cryptoassets Index (CGCI) – the first EU benchmark regulation-compliant index that combines crypto and gold.
CoinShares more recently launched two crypto ETPs (exchange-traded products) designed to share staking rewards with investors. tree of wisdom and 21Shares continued to introduce crypto ETPs to the European market, with the latter plans to support what it considers to be the top 50 cryptocurrencies by the end of the year.
“2022 should be an important year for us in terms of index offerings, with new baskets of thematic indices, volatility, options indices and multi-asset indices,” Le Fur said.
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