If you’re looking to invest in cryptocurrency index funds today through a brokerage account or retirement plan, options are limited. Some developers have launched index fund tokens. The only fund that fits the bill is the Bitwise 10 Crypto Index Fund. While there aren’t any other traditional index funds available that track cryptocurrencies, there is an alternative for more advanced crypto traders. Since it’s publicly traded, it’s available to purchase for anyone with a brokerage account.

What is a cryptocurrency index fund?

Cryptocurrency index funds are still in the works, but they could become a way to build a diverse crypto portfolio in a single investment. Considering the benefits that index funds offer, cryptocurrency index funds are an interesting investment opportunity. They’re affordable, it’s easy to invest in them, and they typically generate solid returns. It contains a pool of funds from investors who put their money in the index fund for a diversified portfolio. What is a cryptocurrency index fund? Index funds are a great way to invest. A cryptocurrency index fund is a financial vehicle that invests in a group of cryptocurrencies.

To be fair, most exchanges charge fees for cryptocurrency trading, so it’s understandable why a crypto index fund would have a higher expense ratio. You can’t invest in these indexes, but we could see index funds that follow them in the future. Although there have been attempts to launch crypto funds over the years, the SEC hasn’t approved the vast majority. The S&P Cryptocurrency Index Series includes several different indexes designed to track the performance of major digital assets. It’s worth mentioning that the S&P Dow Jones Indices have created cryptocurrency indices. But 2.5% is on the high side. So, why aren’t there more publicly traded cryptocurrency index funds widely available?

Bond index funds invest in bonds. An investment in an index fund for cryptocurrency will have much greater price movements than a stock or bond index fund. Because of the differences in those types of investments, your level of risk and potential returns heavily depend on which one you choose. You could make much bigger profits, John Smith but there’s also the possibility of much greater losses. Cryptocurrency is much more volatile than stocks and bonds.

Is there a cryptocurrency index fund? The Bitwise 10 Crypto Index Fund attempts to follow the 10 largest cryptocurrencies by market cap, not including stablecoins (cryptocurrencies designed to follow the value of another asset such as the U.S. Launched in 2017, it was originally only available to accredited investors, but it’s now open to everyone. Bitwise also has several cryptocurrency index funds that are available exclusively to accredited investors. There’s currently one publicly traded cryptocurrency index fund — the Bitwise 10 Crypto Index Fund (BITW -3.05%). Although the number of cryptos it follows is a plus, this fund has a costly 2.5% expense ratio.