This article provides you with key information about the FNDZ Bitcoin (BTC) Index. The information is designed to help you understand the nature and the risks of the index. You are advised to read it so that you can make an informed decision before making a deposit.
An “index” is a portfolio that contains a range of cryptocurrencies that you can buy or sell as a unit. The index makes it easy to diversify your crypto portfolio. If the value of a cryptocurrency rises, the value of the index rises. Or, when the value of a coin falls, the value of the index falls. To counter volatility, FNDZ uses a process called rebalancing. This process adjusts your portfolio on a weekly basis to maintain an ideal risk-return ratio.
The aim of this BTC index is to generate a return from the volatility of Bitcoin, the largest and most liquid cryptocurrency.
FNDZ offers three different Indices, each with a different level of Bitcoin exposure:
The weighting is based on market capitalization, which is determined by multiplying the number of BTC shares by their current market value in US dollars. The index is rebalanced weekly to reflect changes in BTC market capitalization.
The FNDZ BTC Index is a simple and hands-off way to manage your crypto portfolio. Once a week, your portfolio will be adjusted to account for changing market conditions. It allows you to enter and exit favorable positions without combing through charts 24/7.
Bitcoin is also the largest cryptocurrency by market cap, and therefore less volatile than altcoins. In addition, BUSD is a US-regulated stablecoin and fully backed by US dollars. It is the third largest method of payment and store of value.
The rebalancing is done so that the index maintains a fixed share in BTC compared to the total value of the index.
For example, if $100K is deposited into the BTC-Balance Index, it will hold $50K in BTC and $50K in BUSD. The index will track market conditions and rebalance when:
The management and performance fee is charged monthly. Both fees are charged on profits only. The above fees do not include transaction costs. All fees are visible on the FNDZ platform.
FNDZ BTC Index is a convenient way to hold Bitcoin without following the market closely. The index gives you full control over your assets, which you can withdraw at any time.
Take advantage of indexing at FNDZ.