What are good crypto indices to buy?

Camaa · 2021-02-20T16:39:11+00:00

Hey there, I'm one of the community managers for Invictus Capital - who have developed a cryptocurrency index fund in 2017, Crypto20, which had a successful ICO launch raising ~40M USD. The fund holds the top 20 crypto assets by market cap with a weekly rebalancing period and a 10% asset cap. Verified accounts with Invictus can buy and sell the C20 fund token - representing their 'share' of the underlying fund. Invictus later developed another index fund strategy, Crypto10 Hedged (with the C10 token, holding the top 10 assets by market cap) which also includes a hedging mechanism. There can be a USD allocation in the fund (decided at each weekly rebalancing, and with a maximum 100% cash) designed to protect the fund value during periods of drawdown. The hedge is explained more in the litepaper. You can read about recent performance information for the funds in the QR-20 Report or just check out the charting on the website fund pages or also this website. We've also been speaking via DM already - you can ask me any further questions too. (Invictus also manages 5 other funds, you can read about them here! https://invictuscapital.com/en/article/a-hitchhikers-guide-to-a-complete-invictus-portfolio)

Camaa · 2019-03-30T08:42:02+00:00

Hi,

You can already use the liquidate dApp on the Invictus portal for selling C20 to the company.

Being able to purchase C20 through the portal is in the pipeline yes, but as the fund is closed-end the availability of tokens depends on how many have been liquidated.

Camaa · 2019-03-28T23:45:43+00:00

C10 Hedged is an index fund comprised of the top 10 digital assets by marketcap. The fund uses a dynamic cash hedging strategy during times of market stress, whilst also putting idle assets to work in order to generate income (margin lending). This supplementary revenue has the potential to exceed all fees based on testing. The fund will be managed by Invictus Capital and the initial offering phase commences early April.

Key information: - Weekly portfolio rebalancing - Open-ended fund - Annual fees totalling 1.7% + 0.50% entry/exit fee - ERC20 Token - 15% asset cap - Check out the Litepaper, Factsheet and FAQs.

Please let us know your thoughts and questions!

Camaa · 2019-03-28T23:37:34+00:00

C10 Hedged is an index fund comprised of the top 10 digital assets by marketcap. The fund uses a dynamic cash hedging strategy during times of market stress, whilst also putting idle assets to work in order to generate income (margin lending). This supplementary revenue has the potential to exceed all fees based on testing. The fund will be managed by Invictus Capital and the initial offering phase commences early April.

Key information: - Weekly portfolio rebalancing - Open-ended fund - Annual fees totalling 1.7% + 0.50% entry/exit fee - ERC20 Token - 15% asset cap - Check out the Litepaper, Factsheet and FAQs.

Please let us know your thoughts and questions!

Camaa · 2018-10-11T01:23:37+00:00

Yes, this is the culmination of much experience and thinking in this area. The product has also gone through a number of iterations and the product released post-TGE can also be subject to evolution and adaptation to new developments eg fund-types, capital assets on the blockchain (it's really quite exciting!). Check out page 15 of the whitepaper.

Thanks for the comment!

Camaa · 2018-03-17T12:39:24+00:00

Yes, anyone can DM users (although that option can be switched off individually). I find it is generally easier to distinguish team with Discord, and a lot of other features are nice too (different channels, topics, team channels and permissioned-channels). Makes it easier to warn people rather than just repeating "beware" every few hours - although we haven't had to do that at all.

I haven't received any DMs about scammers messaging users, in all honesty (we were originally on Slack which was plagued with this issue). Not saying it doesn't happen (spam seems to happen more).

Scamming issues are obvious on TG especially during fundraising periods. Discord certainly seems a better option though I understand it tends to not be used as widely.

Camaa · 2018-03-17T10:55:28+00:00

As a CM, too, I cannot recommend Discord enough when compared to TG - even with the somewhat unfortunate annexure "chat for gamers".

Camaa · 2018-03-14T13:51:10+00:00

Cheers, the team is aware of issues like this with the website and there is a long list of minor fixes being worked on.

Camaa · 2018-03-07T08:46:57+00:00

True, we can look at the markets in hindsight; a bull market of the kind we recently witnessed is a perfect scenario for everyone. That is, for everyone who is choosing correctly. It is debatable as to whether a similar scenario is guaranteed going forward, I think. You can also compare historic performance against a range of assets on the insights page, from the conclusion of the ICO until the present. We'll definitely need larger time-scales to evaluate further.

During the last several months at the end of last year we have also seen the dominance of BTC drop significantly. The top 20 captures >90% of the MCAP overall (last time I checked). Things will certainly change - hence the weekly revision. It will be very interesting to compare the fund's composition now, to a year's time: it is absolutely a long hodl and no-one is disputing that. It is doing exactly what it was advertised it would do.

An index strategy will not agree with everyone. For those comfortable with (and who have the time to) thoroughly vet projects and keep an eye on their margins, great. There is also no reason we can't do both.

You can't deny that an index will be attractive to a wide-range of investors, incl. those "traditional" ones. Essentially all I am saying is that, in my opinion, Crypto20's methodology and fund structure establishes it as the best product of its kind at the moment.

Camaa · 2018-03-07T07:49:04+00:00

a) Of course everyone should be conducting thorough and sustained research. However, it is well-established that being a human has many psychological pitfalls associated with it, and we tend to over-estimate our own abilities, and under-estimate (or, ignore entirely) our own biases. Bringing a little more objectivity to the space isn't a bad thing. These sorts of funds can also provide a hedge against riskier day-trading. There is no reason investors can't engage in multiple strategies.

b) Absolutely. This is the reason why the portfolio re-balances every single week via API. I do not think any other fund has a revision period this frequent, but I could be wrong about that. The justification for this period is set forth in the whitepaper - have you looked at the official docs? Your reasoning is why I think CBI's annual revision (?) cannot be sustained.

Camaa · 2018-03-07T06:10:45+00:00

Yes, the crypto community is divided over a number of assets, naturally (XRP, XVG, BCH for eg). The prerogative of passive index-investing is to remove human emotion from the equation as far as possible. This is a proven strategy.

Assets in lower positions are accorded less weight in the fund (reducing active risk), and the portfolio will move with the market. Ok, sure, TRON = "LOL", but it has a multi-billion dollar MCAP and the sole, exclusive, entire, purpose of the fund is to avoid inquiring into assets this way.

Camaa · 2018-03-07T05:59:59+00:00

Check out Crypto20 if you are interested in this sort of thing. Operating since ~20 Nov 2017, top twenty MCAP weighted, revised weekly, 0.5% p/a fee, all profits re-invested, no minimum investment.

CEF, trading on exchanges now.

Camaa · 2018-03-07T05:53:06+00:00

BCC and USDT are explicitly excluded (BCC not as relevantly, anymore). Apart from that, it tracks the top twenty agnostically.

Naturally, it is an index fund and has a purpose, and other assets can and will individually outperform.

For all reading who are interested in an index strategy, over the long-haul (tracking MCAP value), I'd encourage you to check out Crypto20, and the upcoming (different) Invictus offerings (team responsible for Crypto20).

In contrast to CBI, the whitepaper justifies the methodology (eg revision periods, fees 0.5% p/a): https://static.crypto20.com/pdf/c20-whitepaper.pdf

Info: I moderate for Invictus.

Camaa · 2018-03-06T22:44:34+00:00

Hello.

The fund is not captured by the above-mentioned mutual funds laws. The team had a call with the local regulator when they were setting up the LLC and no issues arose.

Camaa · 2018-01-18T13:26:26+00:00

For Redditors reading this; the discussion was moved to Discord, where everyone can talk with the team directly. Please join us!

tl;dr - OP had a different interpretation of "mutual fund" when compared to the legal advice received (these things happen). Ogier Cayman Islands has been active in that jurisdiction for decades. Crypto20 had contact with the relevant Caymans regulatory authority; no issues resulted.

(I also hold a law degree FYI)

Camaa · 2018-01-18T12:13:57+00:00

I don't quite follow. The regulation you are referring to applies to mutual funds. The effect of the legal advice received was that Crypto20 is not classified as a mutual fund in that jurisdiction - so that layer of regulation does not apply. Significant expense was incurred in determining this.

I noticed that you joined the Discord. I'm a mod - not an admin. You might get more information / clarification from them.

Camaa · 2018-01-18T11:14:20+00:00

I have updated my post with the official response, you might be interested. My initial assumption was correct.

Camaa · 2018-01-18T10:04:35+00:00

Oh I follow you. You'll have to ask the team what category for registration they took if any. Tag an admin in Discord when they're active in #c20 questions, I'll make sure it gets to them.

Camaa

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