Switzerland-based Index Provider Offers DeFi Exposure – As crypto investment vehicles continue to emerge; a Swiss index provider has introduced an index that provides exposure to 10 DeFi tokens.
Compass Financial Technologies’ indices are tracked by ETPs all throughout Europe and have around $5 billion in assets.
According to CEO Guillaume Le Fur, appetite for digital asset exposure through institutional-quality solutions is expanding rapidly.
“We’ve recognized the DeFi [theme] as one of the fastest-growing sectors in the crypto business, and the index is designed to provide broad and dynamic exposure to this sector,” Le Fur explained.
According to the firm, the index is the first of its kind to use on-chain data to set weightings by tracking token liquidity and revenue generated through DeFi (decentralized finance) protocols.
With a weighting of around 33%, Uniswap (UNI) receives the most funding. Aave (AAVE), SushiSwap (SUSHI), and Loopring (LRC) all have a market capitalization of more than 10%.
Issuers in any jurisdiction can use the index via a license agreement, subject to local rules. It complies with the EU Benchmarks Regulation and is available on both Bloomberg and Refinitiv.
The debut comes as the number of crypto services in Europe continues to rise.
In June 2020, Compass partnered with CoinShares to launch the CoinShares Gold and Cryptoassets Index (CGCI), the first EU Benchmarks Regulation-compliant index that includes both crypto and gold.
CoinShares has announced the launch of two crypto ETPs (exchange-traded products) that will split staking rewards with investors. WisdomTree and 21Shares have continued to offer crypto ETPs in Europe, with the latter aiming to support the top 50 cryptocurrencies by the end of the year.
“With new theme basket indices, volatility, options-based indices, and multi-asset indices, 2022 should be a big year for us in terms of index offerings,” Le Fur added.