A team at Invictus has created the CRYPTO10 index fund with the help of their original CRYPTO20 crypto tracker fund. This fund would offer investors access to a number of digital assets. The Invictus Capital’s Business Development Manager Jonty Bylos also shared a few future plans regarding the same.
CRYPTO10, the recently launched targeted fund, as the name suggests, traces only 10 crypto assets. Talking about CRYPTO10 fund, Bylos said, “Our latest fund, CRYPTO10, allows investors to subscribe and liquidate via our investment portal, 24/7, without needing to deal with exchanges. Crypto10 is an open fund which tracks the top 10 cryptocurrencies by market-cap, with weekly rebalancing and a cap of 15% on any single asset.”
Each and every fund from Invictus has a respective ERC-20 token, C10 and C20 token which signifies that the three have equal shares in the total fund. These three are tied to the fund’s NAV. Both the tokens are tied to the asset value of the crypto portfolio of the respective token.
The basic function of these tokens is to interact with DApp and smart contract. Especially the ones that liquidate the underlying assets and sends the ETH to the investors. CRYPTO10, unlike CRYPTO20, is an open-ended fund that is issued and burnt upon subscription or redemption.
These tokens can be traded on the secondary markets and which might be redeemed 24/7 for the token value in ETH. All this via interaction with smart contract. Additionally, liquidated tokens can also be repurchased at NAV plus 1% via CRYPTO20’s C20 faucet through South African cryptocurrency exchange Ovex.
The tokens C20n are currently being traded at HitBTC, p2pb2b, and OVEX. On the contrary, C10 is platform independent these can be bought and sold by the investors directly from the Invictus’ platform.
While discussing the fund fees, Bylos said, “Effectively, blockchain and smart contracts automate many of the functions that would otherwise be arduous and costly in the traditional space: such as liquidation, accounting, and fund-management transparency. Our 1% exit fee is applied primarily to discourage arbitrage activity.”
To meet the needs of investors regarding the hedging their exposure during bear markets themselves, the Invictus team has now come up with a hedging mechanism, which they’ve included in their CRYPTO10 fund.
Discussing the future of cryptocurrency index funds, Bylos shares, “We foresee a big growth in cryptocurrency index funds, in a similar way to their growth in traditional markets. However, as CRYPTO20 is a closed fund, it’s unlikely to remain a leading fund. Conversely, we foresee huge growth potential for CRYPTO10.”