Circle Invest, a product of the financial technology startup Circle invested by Goldman Sachs, today officially announced the launch of three new cryptocurrency index funds.
Divya Agarwalla, Senior Vice President of Circle, recently released the “Buy The Market” feature on the company’s blog. More than 30% of users are currently using the service. Circle released this feature in May as A way for clients to invest in “market capitalized positions” of the assets listed on the platform.
A basket of coins like ETF
The three new product categories are based on the common goal of portfolio tokens to provide indicators (index): platform, payment and privacy.
While some cryptocurrency enthusiasts may have problems with the broad classification of such funds and the apparent overlap of services between them, Circle has selected a variety of tokens for each “investment portfolio.”
“The function of cryptocurrencies is complex, and many projects try to provide real-world solutions, but each takes a completely different approach.”
Divya Agarwalla, head of product development at Circle, said and explained:
“Projects like Bitcoin, Bitcoin Cash, Starcoin and Litecoin are trying to build a premium payment channel based on blockchain technology. Payment services are as simple, instant, and borderless as sending emails. If customers are Assets are passionate and want to invest, they can simply buy the “Payments” payment series.”
Each asset in the portfolio will be weighted by market capitalization. Customers can also learn about the product range through our product content.
“The option to purchase this series is now available in the latest updates to Circle Invest’s iOS and Android apps.”
Index fund fund formation trend
As major exchanges and wallet providers launch such similar functions and compete with each other, cryptocurrency index funds are receiving attention. Given the success of low-cost index funds in the stock market, this development is not surprising.
A few days ago, according to the report , Coinbase launched its own portfolio fund for retail investors on September 28, but called it “Bundle.” Bundle is a market-weighted combination of five cryptocurrency lists on Coinbase (Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ethereum Classic). It is worth noting that its minimum investment is only $25. This is also consistent with the mutual fund company’s index funds for small retail investors: low start-up costs, low maintenance costs (even equal to no), and low minimum balances.
In addition, the famous cryptocurrency index fund Bitwise submitted their own ETF to the US Securities and Exchange Commission, called Bitwise10 (Bitwise HOLD 10 cryptocurrency index fund). The fund will select the 10 largest cryptocurrencies based on the market value of the token. This fund is provided by the newly created “Abra” , a cryptocurrency wallet invested by Hon Hai’s HCM Capital .
It is worth noting that Circle Invest also offers 11 cryptocurrencies on its platform, including newly added coins. Since there is currently no cryptocurrency index approved by the competent authority (such as the Dow Jones Index or the S&P 500 Index), the market value is still a reference for these types of fund indices.