Invstr the investing app has publicized on Tuesday, 6th February that they will launch a crypto trading index. The crypto index launched by Invstr is targeted to help the investors to track the price of cryptocurrencies. Presently the list is available with the app user.
The price comparison of an exact virtual currency can also be made with the overall index by the investors. According to the firm, they will be indexing various types of crypto assets that will include utility tokens, payment coins, and security tokens.
The firm has decided to weight the tokens on the basis of their volatility, not on the basis of its market capitalization value as done by many other indices. The assets that will be listed on the app will be reviewed after every three months. This will enable the addition of most recent and secure digital currencies eliminating the unstable and obsolete one.
Some of the coins available to keep eyes on the Invstr app includes Bitcoin (BTC), EOS, Litecoin (LTC), Bitcoin Money (BCH) and Ethereum (ETH). The index will help the retail buyers to examine the effect of the investment on their portfolio. Commonly indices measure the effect on the asset class and not the impact on investors portfolio as stated by the CEO of Invstr.
He further added that if a person is a big investor, then he will be careful about the impact he may have to face on the market, this may not hold true for the small investors. Invstr will address these issues by weighting the constituent assets on the risk-reward basis.
Probably the firm has understood the importance of having cryptocurrencies from the miscellaneous portfolio. The company has started to get a response from the retail investors who have little or no exposure to the crypto market on their collection. The said index can improve the return on such a portfolio at the same time it will reduce the volatility of the performance.
As per a report published in October last year, the total count of institutional investors has overtaken the count of high net valued individual investors. It also reported that the most significant cryptocurrency transaction that happened during that time was worth $100,000.
The Cumberland head, Bobby Cho, said during that time, the cryptocurrencies are nearing the days of its settle down, and a lot of professionalism can be found in the investors of this space.