Four Prominent Cryptocurrency Index Funds to Keep an Eye on in 2019 for Bitcoin Investors
Cryptocurrency index funds have received a great deal of attention lately and they may be something to keep looking at in 2019. Though there are many such index finds, there are several of them that warrant more attention than others. But before getting into the four to watch, it is best to cover how index funds work.
Cryptocurrency index funds function like many other index funds that can be invested in. Investors purchase shares and ultimately, investors collect a bunch of various cryptocurrencies. This way, investors need not invest in just one particular coin, but instead, the investors buys into the fund. The fund then takes the investment and places it in a basket of cryptocurrencies that they think will be viable.
The investment’s value fluctuates depending upon the performance of the cryptocurrencies that the fund had chosen to invest in. The benefit of investing in an index fund is that it takes away the obligation and time of setting up a wallet, tracking coin prices, and trading the coins by exchange. Essentially, all of the components of a cryptocurrency investment are handled by the fund manager. Keep in mind that the effectiveness of the funds can depend upon various factors, and high fees are not necessarily telling.
Now, Here Are The Four Index Funds That May Be Worth Looking At In 2019.
Coinbase has developed in a matter that has led it to be a leading exchange platform. The interface is user-friendly and has maintained a reputation for being trustworthy. The platform is interested in making use of its popularity and user base by offering index funds that track a number of cryptocurrencies. Such cryptocurrencies include Ethereum Bitcoin, Bitcoin Cash, Ox, Basic Attention Token, Litecoin and Ethereum Classic. The Basic Attention Token is Coinbase’s most recent addition and it will start trading in November 2018. The fund is mainly comprised of Bitcoin – which stands at 76%. There are also altcoins that are part of the index, but none of them are particularly interesting or exciting. Essentially, the fund mainly relies upon market cap coins, which may not be as volatile as others.
BB Index features several index funds that are often recognized for their association with Olympus Labs. For those who are unaware, Olympus Labs is a blockchain financial ecosystem, which means that investors who use Olympus will find that the indexes are easy to buy into. And that there is a great deal of expertise behind it. BB Index has 26 various index funds that investors can opt for and it also features flexibility. Those who would like to choose either several top cryptocurrencies or would like to opt for infrastructure investment, it is all possible here. The fund focuses on seven of the most prominent currencies. With this find, users will notice that there is a lot of room to customize their portfolio and to create balance.
Iconomy is an index fund platform that is ideal for those who are interested in diversification of digital assets. There are many funds that users can choose from and the criteria for the fund is interesting a swell. For instance, the fund includes Delta summit Index. This index features digital currencies that that are founded upon a vote by those who attend Delta Summit. The summit is a blockchain event that occurs every October. Some see it as a method to pool knowledge so that a properly-operating fund can be created. The fund also includes the Solidum Prime Index. This index features 23 different cryptocurrencies and it not many are related to bitcoin. The index is based on the belief that to prevent collapse in value of one’s fund, it is best to isolate the index by opting for not well-known currencies. Interestingly enough, the funds that are performing the best in this bear market are conservative ones.
Lastly, Cryptos Fund has the lowest management fees of the four because the fund passively oversees the Index 30 of cryptocurrencies. This is a transparent option that provides users with an objective view of the cryptocurrency market. The index focuses on the best 30 performing cryptocurrencies. Those who invest in this system split their investment amongst the portfolio so that their investment is protected from volatility.
Overall, those who are interested in investing in index funds in 2019 may want to consider the above four. Keep in mind that these are recommendations and not solid advice. It is best to do one’s own research before making a decision.