Europe Based Exchange, Bitpanda, Launches the First ‘Real’ Cryptocurrency Index For Investors
- Europe-based cryptocurrency virtual asset trading platform Bitpanda is launching its own crypto assets index.
- The Bitpanda Crypto Index (BCI) will include top cryptocurrencies aiming to make it simpler for investors and traders to trade complex crypto products.
In a press release statement emailed to the BEG desk, Bitpanda confirmed it would launch ‘the world’s first real crypto index’ on October 6th. The index aims at making the purchase and selling of crypto assets easy, allowing traders to buy multiple cryptocurrencies with a single click.
According to the statement, the BCI is centered on traders and investors who aim to enter professional crypto trading without the hustle. Users can buy a selected list of cryptocurrencies in three main indices – the BCI Top 5 (BCI5), BCI Top 10 (BCI10), and the BCI Top 25 (BCI25) index. The portfolio then rebalances automatically every month based on the market liquidity and the price and market capitalization. The statement reads,
“The Index automatically adjusts the weightings of assets in portfolios over time, so users never feel like they’re missing out on “the next big thing.”
Over the past year, cryptocurrency trading has once again taken a front foot in traders’ minds across the world. Despite this increasing appetite, there is a lack of suitable financial products for users to invest as a whole, rather than individual assets. This reduces the overall volatility while keeping the portfolio diversified and balanced.
Eric Demuth, Co-Founder and CEO of Bitpanda, praised the BCI regulated product will index initiative stating the index “brings the world one step closer to the mass adoption of cryptocurrencies.” Eric further said,
“Apart from making crypto investments super easy, our Indices will help you build a diversified portfolio of assets by tracking the market as a whole. Think of it as a more grown-up, guess-free version of crypto investing.”
The index launch follows a $52 million Series A funding raised by Bitpanda in 2020 led by Valar Ventures. This is the largest European funding round in 2020, yet with a plan to scale its market base and increase its trading platform. The raise will further allow the Vienna-based exchange to start offering stock exchange markets to its customers.