Marat Krimskiy/ITI Funds.
ITI Funds launches Luxembourg-based crypto index fund
The $120m fund is expected to be a boon for investors and high-net-worths.
European exchange traded fund provider ITI Funds has launched its first crypto index fund, aimed at giving institutions another avenue to the fast-growing crypto market.
The move comes after ITI, which only launched in 2018, debuted two funds last year aimed at Russian equities and fixed income markets.
“Now we’re setting up a fund which allows institutional investors and high-net-worth individuals to invest in crypto, we think this is still really missing,” Marat Krimskiy, manager of the project told AltFi.
“The fund is set up with the same structure, but you don't actually touch crypto, the fund itself tracks an index (ITI Funds Crypto Index which is calculated and published by MVIS), and that index tracks the performance of the top 30 coins, while following several rules.”
The top 30 most-capitalised crypto assets include Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, ZCash, Stellar, and Ethereum Classic.
However, the fund’s rules include that no single token should make up more than 15% of the fund’s value, limiting the impact that sharp movements in Bitcoin’s price can have.
“We did that intentionally to make sure other coins rather than Bitcoin can breathe and you can enjoy their growth,” said Krimskiy.
The total fund value is expected to sit at around $120m, with a minimum investment of $200,000.