coin imageBTC20432.39USD(-0.69%)
ETH Index
  • Key Takeaways
  • Ethereum Index Information
  • What’s an Index?
  • What’s the objective of the FNDZ Ethereum 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.
Ethereum Index Information

This article provides you with key information about the FNDZ Ethereum (ETH) 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 Ethereum Index?

The aim of this ETH index is to generate a return from the volatility of Ethereum, the second-largest cryptocurrency after Bitcoin.

FNDZ offers three different Indices, each with a different level of Ethereum exposure:

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

The weighting is based on the Market Cap, which is determined by multiplying the number of ETH shares by the current ETH price. The index is rebalanced weekly to reflect changes in ETH price.

What are the advantages?

The FNDZ ETH 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.

Ethereum is also the second largest cryptocurrency by Market Cap and the most widely adopted blockchain platform (Statista, 2021). 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 ETH compared to the total value of the index.

For example, if $100K is deposited into the ETH-Balanced Index, it will hold $50K in ETH and $50K in BUSD. The index will track market conditions and rebalance when:

  1. The price of ETH has increased. If the ETH share of the index is worth $60K and BUSD is worth $50K, the index will adjust the weighting back to 50/50. This means that it would SELL $5K worth of ETH, which would rebalance the holding to $55K ETH / $55K BUSD.
  2. The price of ETH has decreased. If the ETH share of the index vault is worth $40K and the BUSD is worth $50K, the index will automatically BUY $5K worth of ETH, thereby rebalancing the holding to $45K ETH / $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.

Related Articles
Copy trading, also known as social trading, is a form of portfolio management where traders can copy and execute the trading strategies of more experienced traders using an algorithm. FNDZ is the first DeFi platform that makes copy trading possible from a truly decentralized angle. Read on to learn more.
Vault owners carry out trades on behalf of their depositors. Follow this guide and learn how to trade as a vault owner.
Crypto wallets are your ticket to engaging with the FNDZ platform. Read on to learn about cryptocurrency wallets and how to choose the right one for your needs.
Thinking of opening a FNDZ vault? If you want to earn rewards by benefiting others, this guide is for you. Do well by doing good.
Copy trading, also known as social trading, is a form of portfolio management where traders can copy and execute the trading strategies of more experienced traders using an algorithm. FNDZ is the first DeFi platform that makes copy trading possible from a truly decentralized angle. Read on to learn more.
Vault owners carry out trades on behalf of their depositors. Follow this guide and learn how to trade as a vault owner.
Crypto wallets are your ticket to engaging with the FNDZ platform. Read on to learn about cryptocurrency wallets and how to choose the right one for your needs.
Thinking of opening a FNDZ vault? If you want to earn rewards by benefiting others, this guide is for you. Do well by doing good.
Copy trading, also known as social trading, is a form of portfolio management where traders can copy and execute the trading strategies of more experienced traders using an algorithm. FNDZ is the first DeFi platform that makes copy trading possible from a truly decentralized angle. Read on to learn more.
Vault owners carry out trades on behalf of their depositors. Follow this guide and learn how to trade as a vault owner.
Crypto wallets are your ticket to engaging with the FNDZ platform. Read on to learn about cryptocurrency wallets and how to choose the right one for your needs.
Thinking of opening a FNDZ vault? If you want to earn rewards by benefiting others, this guide is for you. Do well by doing good.

Phase 2
now live!