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Crypto index funds are tasked with tracking a basket of digital currencies. This enables investors to gain exposure to a diversified portfolio of cryptocurrencies through a single investment.
In this guide, we explore the 7 best crypto index funds in the market.
The 7 best crypto index funds are listed below:
Each crypto index fund will differ in terms of the digital currencies it elects to track, in addition to the weighting and rebalancing strategy utilized.
Therefore, investors can read on to pick the best crypto index fund for their financial goals and tolerance for risk.
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As noted above, no two crypto index funds are the same. Each crypto index fund will contain a selected basket of digital currencies at various weights.
Moreover, the chosen cryptocurrencies will often be determined by market capitalization. This means that the crypto index fund will regularly rebalance its tracking benchmark.
Once again, this will vary from one crypto index fund to the next.
We should start by noting that overall, there are much better alternatives to crypto index funds. From an investment perspective, the vast majority of crypto index funds focus on large-cap digital currencies. Considering that the broader market has been bearish for nearly 12 months, this offers little in the way of upside potential.
Instead, investors might consider crypto presales - which offer early access to newly launched digital currencies. Not only that, but early investors get a discounted price when compared to that of the subsequent exchange listing. In this regard, investors may wish to
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