FRANKFURT, Germany--(BUSINESS WIRE)--MV Index Solutions (MVIS), and Amun, an established London-based financial technology company, have launched the Amun Crypto Basket Index (ticker: HODL5), a digital assets index designed to accurately track the top crypto assets.
The Amun Crypto Basket Index tracks the performance of the top five crypto assets in terms of market cap and liquidity, providing diversified exposure to the crypto space while using its proprietary methodology to effectively manage the volatility associated with less liquid or smaller crypto assets.
Amun’s quant-driven volatility management methodology aims to provide best-in-class return/risk profile and performs better than comparative peer indices. According to back-tested data, since January 1st, 2017 until August 31st, 2018, the Amun Crypto Basket Index has generated 2046% in absolute return, compared to 751% in Coinbase and 827% in Bitwise’s Hold10.
In addition, while providing the smallest tracking error against the MVIS CryptoCompare Digital Assets 100 Index – which provides a broad market benchmark – for the same period, the Amun Crypto Basket Index generated the highest Sharpe ratio, a measure for volatility-adjusted return, at 19.03, compared to Coinbase at 7.62 and Bitwise’s Hold 10 at 8.78.
Amun plans to further develop a number of financial products powered by this index as well as create future indices.
“Cryptocurrencies have taken the world by storm since last year,” said Thomas Kettner, Managing Director at MVIS. “Amun’s approach with a forward-looking and volatility adjusted weighting scheme is an enhancement of existing concepts and a valuable alternative for investors who do not want to follow the crowd.”
“We’re very excited to partner up with MVIS to create a reliable crypto index that avoids some of the drawbacks of crypto investing,” explains Hany Rashwan, Chief Executive Officer at Amun. “Our proprietary methods have already shown superior returns compared with other indices and we look forward to building additional products that continue to push the envelope on crypto investing.”
Key Index Features
Full Market Capitalisation (bn USD): 173.17
Number of Components: 5
Base Date/Base Value: 31.12.2016/100
Note to Editors:
MV Index Solutions (MVIS®) develops, monitors and licenses the MVIS Indices, a selection of focused, investable and diversified benchmark indices. The indices are especially designed to underlie financial products. MVIS Indices cover several asset classes, including equity, fixed income markets and digital assets and are licensed to serve as underlying indices for financial products.
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The MVIS© indices are protected through various intellectual property rights and unfair competition and misappropriation laws. In particular, Van Eck Associates Corporation has registered the ‘MVIS’ trademark. You require a license to launch any product whose performance is linked to the value of a particular MVIS© index and for all use of the MVIS© name or name of the MVIS© index in the marketing of the product.
Investments into crypto currencies and/or digital assets are subject to material and high risk including the risk of total loss. The calculated prices may not be achieved by investors as the calculated price is based on prices from different trading platforms. Furthermore, an investment into crypto currencies and/or digital assets may become illiquid depending on the trading platform or investment product used for the specific investment. Investors should carefully review all risk factors disclosed by the relevant trading platform or in the product documents of relevant investment products.