Bitcoin Forum

I am curious if is there any Index Fund cryptocurrency version?

For example, the S&P 500 (Standard and Poor's 500) is composed of 500 large U.S. companies, an index.

I want to ask if there is any like S&P or any indices fund on cryptocurrency where you can trade or hold? I believe this could be on a centralized exchange or tokenized assets or in decentralized platforms/exchanges or smart contracts?

There is Indexcoop.com which appears to be the biggest of them all (~200M in assets under management). They're backed by some known investment firms, but I would still recommend you to do more research as I haven't tried them myself.

Index fund is the basis of the market situation right?
I think in cryptocurrency, Bitcoin is the only basis of the Index fund well at least in general since not all exchanges have index fund as their basis and seriously, in cryptomarket we tend to look more for the price of Bitcoin compare to altcoins.

Didn't hear about this one, looks like an interesting way to invest. I will also try to research more about this since I usually hear index fund in stock market, not familiar on any crypto index fund though.

I have seen some of them, especially on trading view. The reason there is not so much information about them is probably because they are unpopular, but trading view can help you discover some of them under the crypto or index section.

For example, there is the  NASDAQ CRYPTO INDEX (NCI)  tradable on NASDAQ - https://www.nasdaq.com/crypto-index
Bitwise 10 Crypto Index Fund (BITW) tradable on FTX-  https://bitwiseinvestments.com/crypto-funds/bitw/ but the 24-hour trading volume is just $123  :o

I see a number of other indices available on FTX.

You just have to do a small research and read about them

I have pretty good TA but never used index fund. Does someone have experience and does it work in crypto?

Unfortunately the decentralized nature of crypto makes this very difficult. Volatility is also another problem as well considering how coins could get in and out of their top places. You could build a top 10 today, and then tomorrow it would be different in 6 months to a year, you could build a top 500, and %10 of that could be gone in a month. So all in all it is not easy.

You could still do it the way most places in stock world do, but it would be very risky and you would need to be very active on the market to keep selling the ones that get out and buy the ones that get in and keep that market going without too much of a problem. Not an easy task and hence why it is not done. If someone figures out an automated version of this, then I am sure that it will definitely get a lot of attention.

That's one option, but a total dogshit index that's for sure. Imagine holding LTC, BCH, and XLM.

You might want to do a bit of reading on what an index fund is. It can virtually "work" with any asset class, as it's just a basket of assets anyway.

These metrics measure market capacity, which is a misleading indicator for many alternative currencies due to the ease of manipulating market volumes by changing the quantity supplied.

Even if there is a service that provides such a metric, it will be misleading and inaccurate because most of the trading volumes are concentrated in Bitcoin, ETH, USDT. Any change in these three indicators will cause a fundamental change in the rest of top 200 cryptocurrencies.

The greater the number of currencies, the more central the distribution and therefore inaccurate results. For example, the indicator for the first 100 is more accurate than the first 200 and the first 500 is inaccurate.

True, it's probably the reason they are not so popular.

FTX has a number of them, but most have $0 trading volume in the last 24 hours  ;D
Perhaps this signals that the idea of trading Crypto Index funds is not worth pursuing at the moment due to low liquidity. Imagine purchasing them and then failing to sell of because the buy orders are not there or are so low.

I'm aware of the FTX, what do you mean are those pairs under their "Leveraged Tokens"? I also saw some indeces like on their futures market, like DEFI-PERP/SHIT-PERP/ALT-PERP.
Yeah, it seems this suits my question about indices that are related to cryptocurrency or just like S&P 500 index.

Yep. Because no one in the right mind would honestly hold them as there's simply so much crap down the list. And to add to that, BTC+ETH(probably 70-30?) would pretty much act somewhat like an index fund in the first place.