Choosing the winning protocols of tomorrow
The Sygnum Platform Winners Index ETP – an easy, secure and smart way to gain exposure to the foundational layer of blockchain protocols.
In recent times cryptocurrencies have been one of the hottest topics in the finance industry, capturing the interest of both retail and institutional investors. Buying Bitcoin is usually the first step for every new investor, but soon after, most seek to further diversify their exposure into more tokens. While actively investing into single tokens is a viable strategy, choosing the ones that will succeed in the long term requires a very specific expertise and skillset. For people who do not want to actively manage their token selection, but would rather gain exposure by tracking the general market or a specific trend, investment products tracking cryptocurrency indices are the logical option.
Our first index tracks the protocol layer – the native tokens of blockchain protocols such as Bitcoin and Ethereum.
The Sygnum Platform Winners Index is investible through an exchange traded product or “ETP” (ticker: MOON), which is listed on the Swiss stock exchange. The ETP structure provides access to the underlying assets through a traditional financial instrument, while trading and custody of the underlying tokens is handled by the product issuer. The ETP is fully collateralised with an institutional-grade custody solution, and liquidity is ensured by leading market makers and mirrors the underlying tokens, making the ETP easily tradable even for large orders.
Extending the weighting factors beyond market capitalisation to properly reflect a token’s ecosystem growth provides investors with an intelligent exposure to the market. The systematic quarterly rebalancing ensures that (1) the index stays on trend based on the four weighting components and (2) constituents are reselected to continue reflecting the market’s view of the winners.
Following the fully systematic approach for token selection and weighting, the Sygnum Platform Winners Index ETP currently counts 8 constituents. Next to the two crypto power houses Bitcoin and Ethereum, the index also includes promising projects such as Cardano, Binance and Polkadot.
You can download the factsheet for the Sygnum Platform Winners Index ETP here, or invest via your bank on the Six Exchange. For more information on Sygnum’s range of asset management solutions, please contact us at asset-management@sygnum.com
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Disclaimer
This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.