The Swiss-based fund manager Compass Financial Technologies has launched an index for 10 decentralized finance (DeFi) tokens dubbed the “Compass Crypto Basket Fundamental DeFi Index” (CCBFDEFI).
The firm was founded in 2017 and offers indices and services tailored to cryptocurrencies, commodities, multi-assets and real estate.. It manages around $5 billion in investment products related to its indices.
The CCBFDEFI went live on February 22 and provides institutional exposure to a pool of 10 DeFi tokens. which are individually weighted based on “the protocol’s liquidity, market capitalization, and revenue metrics” and on-chain data.
The maximum weight of any token is capped at 35% and the pool of assets is selected each month. The company has listed more than 20 approved tokens that can be used as index constituents each month, such as UniSwap (UNI), Compound (COMP), Aave (AAVE), and SushiSwap (SUSHI).
The CEO of Compass Financial Technologies, Guillaume Le Fur, highlighted that Institutional Appetite for Crypto Exposure Is “Growing Significantly”as companies look for ways to invest in the sector in a respectful way:
“Incorporating fundamental metrics into index building gives investors the ability to allocate in the most efficient DeFi tokens based on sound economic indicators.”
The CCBFDEFI is now available on the company’s website, along with Bloomberg and Refinitiv, and complies with the EU regulations on benchmarks (EU BMR). The product is also available for use under a license agreement with Compass Financial Technologies.
Compass Financial Technologies also partnered with leading cryptocurrency fund manager CoinShares in late January. to provide its indices for reference prices as part of CoinShares physical exchange-traded products (ETPs), which have zero management fees and offer staking rewards.
Thanks to the @CoinSharesCo team for choosing our EU BMR-compliant Compass Crypto Reference Indices as reference prices for their Coinshares Physical ETPs including for the new CoinShares Physical Staked Tezos and CoinShares Physical Staked Polkadot ETPs. https://t.co/v3QgMxLLg0
— COMPASS Financial Technologies (@CompassFT) January 26, 2022
Thanks to the team at @CoinSharesCo for choosing our EU BMR compliant cryptocurrency benchmarks as benchmark prices for their CoinShares physical ETPs, including the new CoinShares Physical Staked Tezos and CoinShares Physical Staked Polkadot ETPs.
In April last year, the firm launched a suite of EU BMR-compliant cryptocurrency indices covering areas ranging from benchmark prices to intelligent risk control and volatility targets..
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