Crypto Index Launches Its Tokenized ETF i20 Token Based On The Top 20 Cryptocurrencies

As the cryptocurrency market slowly recovers from a prolonged bear market, it is becoming increasingly evident that both retail and institutional investors are curious about digital assets. Still, the technical complexities of managing and diversifying portfolios within the cryptocurrency ecosystem make it challenging and intimidating for retail investors to participate in this market. There are many different tokens, wallets, and exchanges from which to choose.

Crypto Index, branded as the S&P of the crypto world, has introduced its pioneering tokenized Exchange Traded Fund (ETF) known as the i20 (Index 20) token as the investment for anyone who wants exposure to the crypto market without having to get in the weeds of buying actively and selling different tokens to chase a profit. This innovative financial instrument offers investors diversified exposure to the top 20 cryptocurrencies by market capitalization, excluding stablecoins.

ETF evolution

Exchange Traded Funds (ETFs), first introduced to financial markets in the early 1990s, have traditionally comprised baskets of individual securities tracking an index of prominent stocks, commodities, bonds, or other basket assets. These investment vehicles have long been celebrated for their capacity to provide investors with flexible strategies for portfolio diversification, risk management, and cost-effective trading. Remarkably, the adaptation of this conventional financial concept to cryptocurrencies is only now gaining traction, thanks in part to BlackRock’s filing for a spot Bitcoin ETF in June.

The i20 presents itself as a promising solution to one of the most common obstacles cryptocurrency investors face: the daunting task of diversifying their holdings. The token allows investors to securely acquire a stake in the combined value of the top 20 global cryptocurrencies with minimal overhead risk.

Diversified portfolios

“We are witnessing an incredible demand for diversified investment opportunities within the crypto space,” says Adiel Barzel, Co-Founder of Crypto Index. “At Crypto Index, we see our launch as a pivotal milestone for the industry because it provides users with a one-stop-shop for exposure to the top 20 cryptocurrencies at any given time. The i20 token is flexible, transparent, and provides both experienced and inexperienced crypto investors with a convenient solution to diversified long-term investing across a wide range of currencies. We are excited to start this journey, and look forward to additional token launches, exchange listings, multisig-wallets, and more.”

Crypto Index has effectively responded to the growing demand for accessible and diversified crypto portfolios through the introduction of the i20 token. Each investment in the i20 token’s fund is meticulously divided across the top 20 cryptocurrencies, with each coin representing an equal 5% share of the portfolio. The index undergoes bi-weekly updates, ensuring that it adapts to market cap fluctuations within the top 20, with resulting profits benefiting the fund.

BitMart listing

Major digital asset trading platform BitMart announced it will list the i20 token starting on September 12, 2023, offering the tokenized ETF to all BitMart users. The i20/USDT trading pair will officially commence trading at 10:00 AM (UTC), heralding a significant advancement in the accessibility of cryptocurrency investments. This marks the i20’s first listing on an exchange platform.

Maintaining transparency and curbing risk

To fortify security and transparency, Crypto Index has established a “Core Analyst Committee,” composed of five expert analysts. In instances where a cryptocurrency from the top 20 experiences a rapid decline, this committee possesses the authority, with a four-fifths majority vote, to remove the struggling currency from the index. In such cases, the next cryptocurrency on the list takes its place in the i20 index, ensuring a dynamic and responsive investment strategy.

Crypto Index enhances the transparency of the i20 token through the provision of its proprietary measurement and market tracking system, akin to traditional market trackers. This system offers insights into the metrics that determine the inclusion of 20 tokens in the index for a given two-week period. Additionally, Crypto Index simplifies portfolio creation and maintenance for retail investors by streamlining the onboarding process and implementing automatic rebalancing.