Altcoin Index Fund

[Zangelbert Bingledack]

Does anything like this exist? Either a managed fund that seeks to invest in the most promising altcoins, or just a broad industry index, would be useful for people who don't have time to keep track of all the little developments.

[1714715429]

1714715429

[iampingu]

I was thinking of setting something like that up, but I don't have the reputation yet.

[damnek]

I've been playing with this idea in my head for quire a while now. I think this should be the future of virtual currencies. At a technical level it is not difficult to develop a wallet that connects to numerous virtual currencies. Then your wealth will be expressed in terms of the altcoin index. I think the rise of altcoins will (to some extent) dilute the value of bitcoin and solve its deflation problem. I think the next big move in the cryptocurrencies space is that the market will rebalance the value of bitcoin with respect to the altcoins.

[bitanalysis]

Has anyone started something like this yet?

[kelsey]

Does anything like this exist? Either a managed fund that seeks to invest in the most promising altcoins, or just a broad industry index, would be useful for people who don't have time to keep track of all the little developments.

just what cryptos need more bs financial products. why head on all the same roads as the fiat world?

[Za1n]

Yes, CoinoIndex (INDEX) has been available for trading on Poloniex for some time. https://poloniex.com/exchange#btc_index

The CoinoIndex tracks the top twenty alternative cryptocurrencies ranked by largest capitalization.

More information on the Altcoin Index Fund (Coinoindex) can be found at their website: http://coinoindex.com/ or also a brief overview can be found here: http://www.alternativecoin.com/altcoin-index-fund-coinoindex-now-available/

They also have a thread on this forum: https://bitcointalk.org/index.php?topic=1129646.0

[Zer0Sum]

Does anything like this exist? Either a managed fund that seeks to invest in the most promising altcoins, or just a broad industry index, would be useful for people who don't have time to keep track of all the little developments.

just what cryptos need more bs financial products. why head on all the same roads as the fiat world?

Because Wall Street will take over the "crypto world" the minute it's profitable...
There are already 2 BTC funds... and with FIX connections algo trading will take over crypto trading.

Also...
Your post shows a deep misunderstanding of "financial products" such as funds of alts/stocks...
They are crucial to lowering volatility for the casual investor... and make crypto/stocks conservative enough for mainstream.

[gjhiggins]

just a broad industry index

Would that it was quite so straightforward as that. The integrity of such an index would be ultimately reliant on the collective integrity of exchange owners.

wikipedia definition: “In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment.”

Altcoin exchanges are not subject to regulation and the impact of this is that there's no trustworthy canonical list either of exchanges or of trades and so the completeness and accuracy of the data is unreliable to an indeterminate degree.

Any definition of “representative” can only be developed with reference to this unreliable data.

The statistical measures of change would be based on this hoped-to-be-representative group of unreliable data points.

Still interested?

Cheers

Graham