There are a majority of indices target institutional investors with similar plans. Also, one such platform is Investr which now decides to aim at retail investors. This move will likely help them assess the influence of crypto investment right on their portfolio.
What is Investr? It is basically an application which allows users to invest in this stock market. Moreover, it offers users the entire research on the stock market; let them make informed decisions according to the data provided. Also, this platform enables the user to engage in fractional share trading which has no minimum investment.
According to its press release, the company Investr notes that the index is said to include digital assets and utility tokens as a whole. However, their index weight will be counted as per their market volatility.
Meanwhile, this particular aspect is unlike in most indices out there which utilizes a market capitalization of crypto. Also, then their weight gets adjustment dynamically within three months. The point to note is to qualify for the index addition; a digital asset should hold a determined level maturity of a price.
The Project Will Work On Retail-Oriented Approach
The report mentions that its index involves 18 cryptos, and all of them are carefully chosen which will further be under review for rebalancing. Some of them are:
Moreover, the report discloses that this index will operate on retail-orientation in line together with the business model of the app. The app Investr let the retail investors purchase stocks just using few dollars via the facets of fractional share trading.
According to Kerim Derhalli, the CEO at company this approach will greatly influence a group which other firms ignore to consider. On the other hand, the former head working at equity trading in Deutsche Bank also believes this as a perfect accompaniment to their app. He elaborates:
Retail investors want to know whether they should invest in cryptocurrencies and what the impact of that investment will be on their portfolios. Traditional indices measure impact on the asset class, not an investor’s portfolio. […] This is not a relevant consideration for smaller investors who want to know what the impact will be on their portfolios.
Meanwhile, the company also identifies the advantages of holding cryptos and its impact on the portfolio of an investor. As per the company analysis, a modest exposure regarding digital assets can enhance the portfolio return and in turn, minimize the volatility of its returns.
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