coin imageBTC20432.39USD(-0.69%)
BTC Index
  • Key Takeaways
  • Bitcoin Index Information
  • What’s an Index?
  • What’s the objective of the FNDZ Bitcoin Index?
  • What are the advantages?
  • Practical example
  • Charges for this Index
Key Takeaways
  1. Indices are a great way to make your assets work for you.
  2. Instead of HODLing, the index takes advantage of price swings.
  3. FNDZ indices are designed to buy low and sell high.
  4. Minimize the time and effort you spend trading.
  5. All fees and trades are completely transparent.
Bitcoin Index Information

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.

What’s an Index?

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.

What’s the objective of the FNDZ Bitcoin Index?

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:

  1. BTC-Light Index: The index has a BTC exposure of 34% and a BUSD stablecoin exposure of 66%, ideal for conservative traders.
  2. BTC-Balance Index: The index holds a 50/50 split between BTC and BUSD.
  3. BTC-Heavy Index: The index has a BTC exposure of 66% and a BUSD stablecoin exposure of 34%, ideal for traders who are bullish on BTC.

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.

What are the advantages?

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.

Practical example

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 price of BTC has increased. If the BTC allocation is worth $60K and BUSD is worth $50K, the index will change to a weighting of 50/50. This means that it would SELL $5K worth of BTC, which would rebalance the holding to $55K BTC / $55K BUSD.
  • The price of BTC has decreased. If the BTC allocation is worth $40K and the BUSD is worth $50K, the index will automatically BUY $5K worth of BTC, thereby rebalancing the holding to $45K BTC / $45K BUSD.
Charges for this Index

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.

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