Bitpanda Launches New Crypto Indices for Long-Term Diversified Portfolios

Bitpanda, a digital investment platform, rolled out at least four crypto indices for investors, providing more options by helping them to diversify their portfolios.

The company seeks to simplify investment in different cryptocurrency projects, such as the metaverse, decentralized finance (DeFi), smart contracts, and infrastructure through new automated crypto indices. 

Through the Bitpanda Crypto Indices, the platform intends to take away the complexities of investing in the cryptocurrency markets by offering users a hands-off approach. 

Eric Demuth, the CEO and co-founder of Bitpanda, said:

“We launched Bitpanda Crypto Indices as a game changer for all people interested in crypto, especially newer investors who didn’t know where to start building their crypto portfolios.”

Initially, Bitpanda established three crypto index products in 2020 to auto-invest in the top 5 to 25 cryptocurrencies depending on popularity determined by liquidity and market size.

Therefore, the new crypto indices intend to render more investment opportunities in evolving spaces like the metaverse and DeFi. Demuth added:

“These four new crypto indices allow people to invest in areas they are passionate about. There’s no hassle, no need to constantly research new crypto projects, just a simple way for everyone to diversify their portfolios.” 

Therefore, Bitpanda sees the new crypto indices as a stepping stone toward offering investors long-term diversified portfolios by being able to purchase multiple assets in emerging areas. 

The firm also acknowledged that the crypto indices would be rebalanced monthly depending on liquidity and market size. 

Meanwhile, the Crypto Price Index (CPI) was touted as a game-changer in the cryptocurrency market, Blockchain.News reported. 

It was anticipated to function like the Dow Jones Industrial Average by offering insights into the trading history of the major blockchain projects. 

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Zimbabwe Plans to Support Crypto ETFs, Calming Lower the Cost of Remittance

As many countries make advances toward supporting digital currency innovations, Zimbabwe’s Finance Minister, Mthuli Ncube, has confirmed that the government is exploring ways to let cryptocurrencies thrive. (55).jpg

Speaking to the country’s citizens at an event in Dubai last week, Ncube said the country is already creating an avenue to make digital currencies like Bitcoin legal, but not to become a legal tender, as in the case of El Salvador.

The minister pointed out the fact that digital currencies are now too big to ignore and that the embrace of digital currencies can help lower the cost of remittance to the country. This inflow is on track to hit $1 billion this year. Amongst the major considerations, Ncube noted the country is working on the launch of a crypto ETF. According to him, the plans for these products are already underway, and private investors are fronting the initiative.

While acknowledging that the nation has no plan to ban digital currencies, he explained, “but our view is that we do not want it to be a currency. Want this to be an investment class. So,… through the Victoria Falls Stock Exchange platform, we will try to create crypto-based products there, which is ring-fenced within the offshore zone.”

He reassured that the ministry “has taken the first step already and created a sandbox, at the Reserve Bank of Zimbabwe (RBZ), where the idea and everything else is being tested in a safe regulated, environment where it will then migrate to this safe Victoria Falls environment.”

There are no timelines for these crypto ETF pursuits. However, he noted that the active partners helping to develop the index weighting the ETF products will be based on are from Dubai, one of the growing financial hubs in the world today.

Crypto ETF products are becoming popular today. While relatively new, countries like Canada, Brazil, and Germany have active Bitcoin ETF products. The current move from Zimbabwe may place the country as the first in Africa to float the country’s first crypto ETF.

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Galaxy Digital partners with Bloomberg for DeFi index

Financial news site Bloomberg and Galaxy Digital Management have expanded their crypto offering to track the performance of the decentralized finance space.

In a Thursday announcement, Bloomberg said it would launch an index currently tracking nine different decentralized finance, or DeFi, projects with Galaxy Digital. As of Aug. 1, these projects included Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap (SUSHI), 0x (ZXR), and Uma (UMA).

“Decentralized finance is growing as the next major investment theme within crypto,” said Alan Campbell, Bloomberg’s multi-asset index business’ head of product management. “As liquidity and institutional custody solutions continue to grow, DeFi has become an increasingly compelling option for institutional investors.”

According to Bloomberg, the DeFi assets were selected “based on institutional trading and custody readiness” in the United States, in addition to the “quality of pricing.” The news outlet said no single project would ever represent less than 1% of the index’s overall value, but no more than 40%. The funds arm of Galaxy Digital, Galaxy Fund Management, will also offer its own passively managed fund tracking the performance of Bloomberg’s, listed under the ticker DEFI.

Related: Coop to include BadgerDAO in DPI DeFi index from August

The announcement comes three years after Bloomberg and Galaxy Digital first partnered to create a joint crypto benchmark index. At its launch in May 2018, the index tracked ten cryptocurrencies from the “largest, most liquid portion” of the market, which included Bitcoin (BTC) and Ether (ETH).

Bloomberg and Galaxy Digital’s new DeFi index follows the creation of a DeFi Crypto Index Fund operated by fund manager Bitwise in February. Though Bitwise reported returns of 46.4% over the last month, the fund has a net asset value of 8.6% less since its inception.