{"id":2102,"date":"2022-03-25T17:00:00","date_gmt":"2022-03-25T17:00:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=2102"},"modified":"2025-06-03T16:30:04","modified_gmt":"2025-06-03T16:30:04","slug":"crypto-index-funds","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/crypto-index-funds\/","title":{"rendered":"Crypto Index Funds: Risk Management Tool, or Risky Business?"},"content":{"rendered":"\n

New crypto index funds make it easy for investors to diversify, but is investing in them a good idea?<\/em><\/strong><\/p>\n\n\n\n

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One of the core tenets of crypto is decentralization, and that means there’s no hotline or 1-800 number to call if you mismanage your investments. No one can get your money back\u2014not even the people who invented the blockchain on which you\u2019re executing your trades\u2014whether you lost it through scams, theft, or just plain bad investments.<\/p>\n\n\n\n

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\u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. \u2026The one constant in crypto is change.\u201d<\/p>\n<\/blockquote>\n\n\n\n

So when you’re lasso-ing around your crypto coins in the proverbial wild wild west, it’s important to have a strategy that\u2019s as smart as your risk tolerance is high. We\u2019re undoubtedly in the midst of a crypto boom, but not every protocol or ecosystem that earns 15 minutes of fame will last. It\u2019s imperative to do your own research (DYOR) before investing in any new crypto asset such as a utility token or other altcoin.<\/p>\n\n\n\n

For this reason, fintech startups are rolling out index funds for decentralized finance (DeFi) like hotcakes, as a convenient way for investors to gain diversified exposure to a broader swath of the top crypto coins while mitigating all the inevitable risk\u2014in theory.<\/p>\n\n\n\n

However, DeFi investing of any kind comes with its fair share of caveats, so let\u2019s take a look at what crypto index funds are and what investors should know about them.<\/p>\n\n\n\n

What is a crypto index fund?<\/h2>\n\n\n\n

Broadly speaking, a crypto or DeFi index fund is a type of security that allows investors to have diversified exposure to a particular group or category of crypto tokens.<\/p>\n\n\n\n

For instance, investors may buy shares in a DeFi index that represents the top 10 cryptocurrencies in the market. That way, even if one coin or project tanks, there are nine others that could still perform well.<\/p>\n\n\n\n

Crypto index funds can refer to shares that are publicly traded on a traditional stock market or the new decentralized indices that exist purely in the DeFi world to be traded in the form of crypto tokens.<\/p>\n\n\n\n

Examples of crypto indices include:<\/p>\n\n\n\n

    \n
  • The Index Coop DeFi Pulse Index<\/li>\n\n\n\n
  • The Index Coop Ethereum 2x Flexible Leverage Index<\/li>\n\n\n\n
  • The Index Coop Metaverse Index<\/li>\n\n\n\n
  • The Bitwise 10 Crypto Index Fund<\/li>\n\n\n\n
  • The Galaxy DeFi Index Fund<\/li>\n\n\n\n
  • Amun\u2019s Solana Ecosystem Index<\/li>\n\n\n\n
  • Amun\u2019s Polygon Ecosystem Index<\/li>\n\n\n\n
  • Amun\u2019s DeFi Index Token<\/li>\n\n\n\n
  • S&P Bitcoin Index<\/li>\n\n\n\n
  • S&P Ethereum Index<\/li>\n\n\n\n
  • S&P Cryptocurrency MegaCap Index<\/li>\n\n\n\n
  • The Grayscale Digital Large Cap Fund<\/li>\n\n\n\n
  • The Morgan Creek Digital Asset Index Fund<\/li>\n<\/ul>\n\n\n\n

    Some of these products are capitalization-weighted funds that select assets to include in the fund based on market cap, while others\u2014like Index Coop\u2019s Ethereum 2x Flexible Leverage Index and Amun\u2019s Solana Ecosystem Index\u2014are based on choosing underlying tokens from specific projects.<\/p>\n\n\n\n

    Some of the indices on the above list are publicly traded, while others are tokenized cryptos that represent a tiny share of diversified ownership of all the cryptos included in the index.<\/p>\n\n\n\n

    Who can invest in crypto index funds?<\/h2>\n\n\n\n

    As of now, most publicly traded crypto indices are available to high net worth accredited investors and institutional investors only, with a few emerging options available for retail investors.<\/p>\n\n\n\n

    For this reason, a number of decentralized crypto indices have been developed that give anyone fluent in DeFi with enough crypto to afford it the opportunity to partake in diversified crypto investing. These tokenized DeFi indices are available to anyone with a DeFi wallet and willingness to learn how crypto works.<\/p>\n\n\n\n

    \u201cCrypto offers a lot of opportunities,\u201d says James Wang, head of tokens at Amun. \u201cFor people who want to do the homework and who love researching technology, I think [index tokens are] probably the highest bang for the buck activity.\u201d<\/p>\n\n\n\n

    Are crypto index funds legit?<\/h2>\n\n\n\n

    DeFi is unregulated at present, so participation is always at the investor\u2019s own risk. And the U.S. exchanges are not keen on listing index tokens because regulatory guidance from the Securities and Exchange Commission (SEC) is still evolving.<\/p>\n\n\n\n

    \u201cThey don’t want to arguably list anything that resembles a security,\u201d says Wang. For this reason, he says, Amun is incorporated in the Seychelles, a sovereign island state off the eastern coast of Africa.<\/p>\n\n\n\n

    \u201cWe’ve chosen a fairly friendly regulatory base,\u201d Wang says. \u201cAnd we’ve made the contracts as decentralized as possible. It’s not really us running the code. We’re not managing your money. We don’t really take your money. It’s managed by a smart contract.\u201d<\/p>\n\n\n\n

    The strategy has been to make Amun as decentralized as possible, says Wang, and effectively act as automated software on top of the Ethereum blockchain. \u201cWe are not a money manager doing stuff with your money,\u201d he says.<\/p>\n\n\n\n

    Nevertheless, anyone investing in either a traditionally listed crypto index or a decentralized one should know the difference and their reasoning behind it.<\/p>\n\n\n\n

    \u201cWhen you buy something on the traditional exchange through fiat or traditional payment railways, it is very standard and safe,\u201d says Armando Aguilar, an independent digital asset strategist formerly at Fundstrat Global Advisors. These options appeal to investors looking to balance out their portfolio with some crypto exposure and liquidity.<\/p>\n\n\n\n

    The DeFi crowd, however, prides itself on operating with a healthy dash of independence: \u201cIt’s a nascent area that’s growing in a lot of demand,\u201d Aguilar says. \u201c[Anyone is] able to just go and buy [DeFi indices] on blockchain \u2026it’s usually the crypto native crowd, or the crowd that has more appetite for risk.\u201d<\/p>\n\n\n\n

    When buying a DeFi index token, such as one of Amun\u2019s offerings or one of the Index Coop DeFi products, you have to remember that historical data to determine which of the top cryptos by market cap gets to be included is still new.<\/p>\n\n\n\n

    \u201cIt’s so hard,\u201d says Wang. \u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. If you did the test in 2015, it would be very Bitcoin-centric. If you did it in 2017, it\u2019d be Ethereum-centric, and in 2020, Solana-centric. The one constant in crypto is change.\u201d<\/p>\n\n\n\n

    What investors should know about crypto indices<\/h2>\n\n\n\n

    His advice? Compare every index you\u2019re interested in buying, as every company will have a unique way of determining what belongs in their product lineup. And that will sit differently with each individual investor.<\/p>\n\n\n\n

    \u201cIt\u2019s very much a function of what does the investor believe in and where do they want to place their risk?\u201d Wang says. In Amun\u2019s DeFi index, for instance, the company gave equal weight to the allocations across its top eight coins.<\/p>\n\n\n\n

    \u201cIt\u2019s pretty unbiased and also gives a chance for the smaller participants to outperform market volume,\u201d Wang says. \u201cAnd what’s great about these index tokens versus ETFs, is that the buyer really holds the underlyings and they can get the underlying. So you know, if you buy the DeFi token for example, and it contains CURVE and AAVE and whatnot, if you wanted to own the underlying tokens you can take the tokens and on our website, click the \u2018burn contract,\u2019 and it will literally burn our token and give you the eight underlyings. It really shows the power of DeFi.\u201d<\/p>\n\n\n\n

    You can\u2019t take your shares of an S&P 500 ETF, click a button on Schwab and get 500 of those shares, Wang argues. \u201cWith crypto, you really own the underlying assets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

    New crypto index funds make it easy for investors to diversify, but is investing in them a good idea? One of the core tenets of crypto is decentralization, and that means there’s no hotline or 1-800 number to call if you mismanage your investments. No one can get your money back\u2014not even the people who […]<\/p>\n","protected":false},"author":11,"featured_media":2103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[77,22,56],"post_authors":[82],"class_list":["post-2102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-alternative-investing","tag-cryptocurrency","tag-technology"],"acf":[],"yoast_head":"\nCrypto Index Funds: Risk Management Tool, or Risky Business? | MoneyMade<\/title>\n<meta name=\"description\" content=\"New crypto index funds make it easy for investors to diversify, but is investing in them a good idea?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/moneymade.io\/learn\/articles\/crypto-index-funds\/\" \/>\n<meta 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idea?<\/em><\/strong><\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/columns","attrs":[],"innerBlocks":[{"blockName":"core\/column","attrs":{"width":"10%"},"innerBlocks":[],"innerHTML":"\n<div class=\"wp-block-column\" style=\"flex-basis:10%\"><\/div>\n","innerContent":["\n<div class=\"wp-block-column\" style=\"flex-basis:10%\"><\/div>\n"]},{"blockName":"core\/column","attrs":{"width":"80%"},"innerBlocks":[{"blockName":"core\/image","attrs":{"id":2103,"sizeSlug":"large","linkDestination":"none"},"innerBlocks":[],"innerHTML":"\n<figure class=\"wp-block-image size-large\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Crypto_Indices_Article_MO_4a5ed3ecf2-1024x683.png\" alt=\"\" class=\"wp-image-2103\"\/><\/figure>\n","innerContent":["\n<figure class=\"wp-block-image size-large\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Crypto_Indices_Article_MO_4a5ed3ecf2-1024x683.png\" alt=\"\" class=\"wp-image-2103\"\/><\/figure>\n"]}],"innerHTML":"\n<div class=\"wp-block-column\" style=\"flex-basis:80%\"><\/div>\n","innerContent":["\n<div class=\"wp-block-column\" style=\"flex-basis:80%\">",null,"<\/div>\n"]},{"blockName":"core\/column","attrs":{"width":"10%"},"innerBlocks":[],"innerHTML":"\n<div class=\"wp-block-column\" style=\"flex-basis:10%\"><\/div>\n","innerContent":["\n<div class=\"wp-block-column\" style=\"flex-basis:10%\"><\/div>\n"]}],"innerHTML":"\n<div class=\"wp-block-columns\">\n\n\n\n<\/div>\n","innerContent":["\n<div class=\"wp-block-columns\">",null,"\n\n",null,"\n\n",null,"<\/div>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>One of the core tenets of crypto is decentralization, and that means there's no hotline or 1-800 number to call if you mismanage your investments. No one can get your money back\u2014not even the people who invented the blockchain on which you\u2019re executing your trades\u2014whether you lost it through scams, theft, or just plain bad investments.<\/p>\n","innerContent":["\n<p>One of the core tenets of crypto is decentralization, and that means there's no hotline or 1-800 number to call if you mismanage your investments. No one can get your money back\u2014not even the people who invented the blockchain on which you\u2019re executing your trades\u2014whether you lost it through scams, theft, or just plain bad investments.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/quote","attrs":[],"innerBlocks":[{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. \u2026The one constant in crypto is change.\u201d<\/p>\n","innerContent":["\n<p>\u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. \u2026The one constant in crypto is change.\u201d<\/p>\n"]}],"innerHTML":"\n<blockquote class=\"wp-block-quote\"><\/blockquote>\n","innerContent":["\n<blockquote class=\"wp-block-quote\">",null,"<\/blockquote>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>So when you're lasso-ing around your crypto coins in the proverbial wild wild west, it's important to have a strategy that\u2019s as smart as your risk tolerance is high. We\u2019re undoubtedly in the midst of a crypto boom, but not every protocol or ecosystem that earns 15 minutes of fame will last. It\u2019s imperative to do your own research (DYOR) before investing in any new crypto asset such as a utility token or other altcoin.<\/p>\n","innerContent":["\n<p>So when you're lasso-ing around your crypto coins in the proverbial wild wild west, it's important to have a strategy that\u2019s as smart as your risk tolerance is high. We\u2019re undoubtedly in the midst of a crypto boom, but not every protocol or ecosystem that earns 15 minutes of fame will last. It\u2019s imperative to do your own research (DYOR) before investing in any new crypto asset such as a utility token or other altcoin.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For this reason, fintech startups are rolling out index funds for decentralized finance (DeFi) like hotcakes, as a convenient way for investors to gain diversified exposure to a broader swath of the top crypto coins while mitigating all the inevitable risk\u2014in theory.<\/p>\n","innerContent":["\n<p>For this reason, fintech startups are rolling out index funds for decentralized finance (DeFi) like hotcakes, as a convenient way for investors to gain diversified exposure to a broader swath of the top crypto coins while mitigating all the inevitable risk\u2014in theory.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>However, DeFi investing of any kind comes with its fair share of caveats, so let\u2019s take a look at what crypto index funds are and what investors should know about them.<\/p>\n","innerContent":["\n<p>However, DeFi investing of any kind comes with its fair share of caveats, so let\u2019s take a look at what crypto index funds are and what investors should know about them.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-crypto-index-fund\">What is a crypto index fund?<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-crypto-index-fund\">What is a crypto index fund?<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Broadly speaking, a crypto or DeFi index fund is a type of security that allows investors to have diversified exposure to a particular group or category of crypto tokens.<\/p>\n","innerContent":["\n<p>Broadly speaking, a crypto or DeFi index fund is a type of security that allows investors to have diversified exposure to a particular group or category of crypto tokens.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For instance, investors may buy shares in a DeFi index that represents the top 10 cryptocurrencies in the market. That way, even if one coin or project tanks, there are nine others that could still perform well.<\/p>\n","innerContent":["\n<p>For instance, investors may buy shares in a DeFi index that represents the top 10 cryptocurrencies in the market. That way, even if one coin or project tanks, there are nine others that could still perform well.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Crypto index funds can refer to shares that are publicly traded on a traditional stock market or the new decentralized indices that exist purely in the DeFi world to be traded in the form of crypto tokens.<\/p>\n","innerContent":["\n<p>Crypto index funds can refer to shares that are publicly traded on a traditional stock market or the new decentralized indices that exist purely in the DeFi world to be traded in the form of crypto tokens.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Examples of crypto indices include:<\/p>\n","innerContent":["\n<p>Examples of crypto indices include:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Index Coop DeFi Pulse Index<\/li>\n","innerContent":["\n<li>The Index Coop DeFi Pulse Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Index Coop Ethereum 2x Flexible Leverage Index<\/li>\n","innerContent":["\n<li>The Index Coop Ethereum 2x Flexible Leverage Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Index Coop Metaverse Index<\/li>\n","innerContent":["\n<li>The Index Coop Metaverse Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Bitwise 10 Crypto Index Fund<\/li>\n","innerContent":["\n<li>The Bitwise 10 Crypto Index Fund<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Galaxy DeFi Index Fund<\/li>\n","innerContent":["\n<li>The Galaxy DeFi Index Fund<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Amun\u2019s Solana Ecosystem Index<\/li>\n","innerContent":["\n<li>Amun\u2019s Solana Ecosystem Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Amun\u2019s Polygon Ecosystem Index<\/li>\n","innerContent":["\n<li>Amun\u2019s Polygon Ecosystem Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Amun\u2019s DeFi Index Token<\/li>\n","innerContent":["\n<li>Amun\u2019s DeFi Index Token<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>S&P Bitcoin Index<\/li>\n","innerContent":["\n<li>S&P Bitcoin Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>S&P Ethereum Index<\/li>\n","innerContent":["\n<li>S&P Ethereum Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>S&P Cryptocurrency MegaCap Index<\/li>\n","innerContent":["\n<li>S&P Cryptocurrency MegaCap Index<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Grayscale Digital Large Cap Fund<\/li>\n","innerContent":["\n<li>The Grayscale Digital Large Cap Fund<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The Morgan Creek Digital Asset Index Fund<\/li>\n","innerContent":["\n<li>The Morgan Creek Digital Asset Index Fund<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Some of these products are capitalization-weighted funds that select assets to include in the fund based on market cap, while others\u2014like Index Coop\u2019s Ethereum 2x Flexible Leverage Index and Amun\u2019s Solana Ecosystem Index\u2014are based on choosing underlying tokens from specific projects.<\/p>\n","innerContent":["\n<p>Some of these products are capitalization-weighted funds that select assets to include in the fund based on market cap, while others\u2014like Index Coop\u2019s Ethereum 2x Flexible Leverage Index and Amun\u2019s Solana Ecosystem Index\u2014are based on choosing underlying tokens from specific projects.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Some of the indices on the above list are publicly traded, while others are tokenized cryptos that represent a tiny share of diversified ownership of all the cryptos included in the index.<\/p>\n","innerContent":["\n<p>Some of the indices on the above list are publicly traded, while others are tokenized cryptos that represent a tiny share of diversified ownership of all the cryptos included in the index.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-who-can-invest-in-crypto-index-funds\">Who can invest in crypto index funds?<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-who-can-invest-in-crypto-index-funds\">Who can invest in crypto index funds?<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>As of now, most publicly traded crypto indices are available to high net worth accredited investors and institutional investors only, with a few emerging options available for retail investors.<\/p>\n","innerContent":["\n<p>As of now, most publicly traded crypto indices are available to high net worth accredited investors and institutional investors only, with a few emerging options available for retail investors.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For this reason, a number of decentralized crypto indices have been developed that give anyone fluent in DeFi with enough crypto to afford it the opportunity to partake in diversified crypto investing. These tokenized DeFi indices are available to anyone with a DeFi wallet and willingness to learn how crypto works.<\/p>\n","innerContent":["\n<p>For this reason, a number of decentralized crypto indices have been developed that give anyone fluent in DeFi with enough crypto to afford it the opportunity to partake in diversified crypto investing. These tokenized DeFi indices are available to anyone with a DeFi wallet and willingness to learn how crypto works.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cCrypto offers a lot of opportunities,\u201d says James Wang, head of tokens at Amun. \u201cFor people who want to do the homework and who love researching technology, I think [index tokens are] probably the highest bang for the buck activity.\u201d<\/p>\n","innerContent":["\n<p>\u201cCrypto offers a lot of opportunities,\u201d says James Wang, head of tokens at Amun. \u201cFor people who want to do the homework and who love researching technology, I think [index tokens are] probably the highest bang for the buck activity.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-are-crypto-index-funds-legit\">Are crypto index funds legit?<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-are-crypto-index-funds-legit\">Are crypto index funds legit?<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>DeFi is unregulated at present, so participation is always at the investor\u2019s own risk. And the U.S. exchanges are not keen on listing index tokens because regulatory guidance from the Securities and Exchange Commission (SEC) is still evolving.<\/p>\n","innerContent":["\n<p>DeFi is unregulated at present, so participation is always at the investor\u2019s own risk. And the U.S. exchanges are not keen on listing index tokens because regulatory guidance from the Securities and Exchange Commission (SEC) is still evolving.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cThey don't want to arguably list anything that resembles a security,\u201d says Wang. For this reason, he says, Amun is incorporated in the Seychelles, a sovereign island state off the eastern coast of Africa.<\/p>\n","innerContent":["\n<p>\u201cThey don't want to arguably list anything that resembles a security,\u201d says Wang. For this reason, he says, Amun is incorporated in the Seychelles, a sovereign island state off the eastern coast of Africa.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cWe've chosen a fairly friendly regulatory base,\u201d Wang says. \u201cAnd we've made the contracts as decentralized as possible. It's not really us running the code. We're not managing your money. We don't really take your money. It's managed by a smart contract.\u201d<\/p>\n","innerContent":["\n<p>\u201cWe've chosen a fairly friendly regulatory base,\u201d Wang says. \u201cAnd we've made the contracts as decentralized as possible. It's not really us running the code. We're not managing your money. We don't really take your money. It's managed by a smart contract.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The strategy has been to make Amun as decentralized as possible, says Wang, and effectively act as automated software on top of the Ethereum blockchain. \u201cWe are not a money manager doing stuff with your money,\u201d he says.<\/p>\n","innerContent":["\n<p>The strategy has been to make Amun as decentralized as possible, says Wang, and effectively act as automated software on top of the Ethereum blockchain. \u201cWe are not a money manager doing stuff with your money,\u201d he says.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Nevertheless, anyone investing in either a traditionally listed crypto index or a decentralized one should know the difference and their reasoning behind it.<\/p>\n","innerContent":["\n<p>Nevertheless, anyone investing in either a traditionally listed crypto index or a decentralized one should know the difference and their reasoning behind it.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cWhen you buy something on the traditional exchange through fiat or traditional payment railways, it is very standard and safe,\u201d says Armando Aguilar, an independent digital asset strategist formerly at Fundstrat Global Advisors. These options appeal to investors looking to balance out their portfolio with some crypto exposure and liquidity.<\/p>\n","innerContent":["\n<p>\u201cWhen you buy something on the traditional exchange through fiat or traditional payment railways, it is very standard and safe,\u201d says Armando Aguilar, an independent digital asset strategist formerly at Fundstrat Global Advisors. These options appeal to investors looking to balance out their portfolio with some crypto exposure and liquidity.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The DeFi crowd, however, prides itself on operating with a healthy dash of independence: \u201cIt's a nascent area that's growing in a lot of demand,\u201d Aguilar says. \u201c[Anyone is] able to just go and buy [DeFi indices] on blockchain \u2026it's usually the crypto native crowd, or the crowd that has more appetite for risk.\u201d<\/p>\n","innerContent":["\n<p>The DeFi crowd, however, prides itself on operating with a healthy dash of independence: \u201cIt's a nascent area that's growing in a lot of demand,\u201d Aguilar says. \u201c[Anyone is] able to just go and buy [DeFi indices] on blockchain \u2026it's usually the crypto native crowd, or the crowd that has more appetite for risk.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>When buying a DeFi index token, such as one of Amun\u2019s offerings or one of the Index Coop DeFi products, you have to remember that historical data to determine which of the top cryptos by market cap gets to be included is still new.<\/p>\n","innerContent":["\n<p>When buying a DeFi index token, such as one of Amun\u2019s offerings or one of the Index Coop DeFi products, you have to remember that historical data to determine which of the top cryptos by market cap gets to be included is still new.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cIt's so hard,\u201d says Wang. \u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. If you did the test in 2015, it would be very Bitcoin-centric. If you did it in 2017, it\u2019d be Ethereum-centric, and in 2020, Solana-centric. The one constant in crypto is change.\u201d<\/p>\n","innerContent":["\n<p>\u201cIt's so hard,\u201d says Wang. \u201cWhatever answer the data will show [as a top cryptocurrency in the past] will likely not work going forward. If you did the test in 2015, it would be very Bitcoin-centric. If you did it in 2017, it\u2019d be Ethereum-centric, and in 2020, Solana-centric. The one constant in crypto is change.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-what-investors-should-know-about-crypto-indices\">What investors should know about crypto indices<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-what-investors-should-know-about-crypto-indices\">What investors should know about crypto indices<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>His advice? Compare every index you\u2019re interested in buying, as every company will have a unique way of determining what belongs in their product lineup. And that will sit differently with each individual investor.<\/p>\n","innerContent":["\n<p>His advice? Compare every index you\u2019re interested in buying, as every company will have a unique way of determining what belongs in their product lineup. And that will sit differently with each individual investor.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cIt\u2019s very much a function of what does the investor believe in and where do they want to place their risk?\u201d Wang says. In Amun\u2019s DeFi index, for instance, the company gave equal weight to the allocations across its top eight coins.<\/p>\n","innerContent":["\n<p>\u201cIt\u2019s very much a function of what does the investor believe in and where do they want to place their risk?\u201d Wang says. In Amun\u2019s DeFi index, for instance, the company gave equal weight to the allocations across its top eight coins.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cIt\u2019s pretty unbiased and also gives a chance for the smaller participants to outperform market volume,\u201d Wang says. \u201cAnd what's great about these index tokens versus ETFs, is that the buyer really holds the underlyings and they can get the underlying. So you know, if you buy the DeFi token for example, and it contains CURVE and AAVE and whatnot, if you wanted to own the underlying tokens you can take the tokens and on our website, click the \u2018burn contract,\u2019 and it will literally burn our token and give you the eight underlyings. It really shows the power of DeFi.\u201d<\/p>\n","innerContent":["\n<p>\u201cIt\u2019s pretty unbiased and also gives a chance for the smaller participants to outperform market volume,\u201d Wang says. \u201cAnd what's great about these index tokens versus ETFs, is that the buyer really holds the underlyings and they can get the underlying. So you know, if you buy the DeFi token for example, and it contains CURVE and AAVE and whatnot, if you wanted to own the underlying tokens you can take the tokens and on our website, click the \u2018burn contract,\u2019 and it will literally burn our token and give you the eight underlyings. It really shows the power of DeFi.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>You can\u2019t take your shares of an S&P 500 ETF, click a button on Schwab and get 500 of those shares, Wang argues. \u201cWith crypto, you really own the underlying assets.\u201d<\/p>\n","innerContent":["\n<p>You can\u2019t take your shares of an S&P 500 ETF, click a button on Schwab and get 500 of those shares, Wang argues. \u201cWith crypto, you really own the underlying assets.\u201d<\/p>\n"]}],"_links":{"self":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/2102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/comments?post=2102"}],"version-history":[{"count":0,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/2102\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media\/2103"}],"wp:attachment":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media?parent=2102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/categories?post=2102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/tags?post=2102"},{"taxonomy":"post_authors","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/post_authors?post=2102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}