Switzerland-based index provider offers DeFi exposure
- Uniswap (UNI) accounts for a third of the index, while Aave (AAVE), SushiSwap (SUSHI) and Loopring (LRC) are each over 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.
Financial Technologies Compass‘ indices are worth approximately $5 billion and are tracked by ETPs across Europe.
The appetite for exposing digital assets through institutional-grade solutions is clearly increasing, CEO Guillaume Le Fur told Blockworks.
“We have clearly identified DeFi [theme] as one of the fastest growing sectors in the crypto industry, and the index aims to provide broad and dynamic exposure to the sector,” said Le Fur.
The index is the first institutional product of its kind to determine weights by tracking token liquidity and revenue generated by DeFi (decentralized finance) protocols via on-chain data, the company said.
The largest allocation is found in Uniswap (UNI) with a weighting of around 33%. Aave (AAVE), SushiSwap (SUSHI) and Loopring (LRC) each exceed 10%.
The Index may be used under license by issuers in any country, subject to local regulations. It complies with the EU benchmark regulation and is live on Bloomberg and Refinitiv.
The launch comes as crypto offerings continue to multiply 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 combining crypto and gold.
CoinShares recently launched two crypto ETPs (exchange-traded products) designed to share staking rewards with investors. WisdomTree and 21Shares have continued to launch crypto ETPs into the European market, with the latter planning to support 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 thematic basket indices, volatility, options-based indices and multi-asset indices,” said Le Fur.
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