Bitpanda has launched new thematic Bitpanda Crypto Indices (BCI) as an easy, automated way for anyone interested to invest in different segments within the crypto space.
The complexity of the cryptocurrency market prompted Bitpanda to introduce its Bitpanda Crypto Indices in 2020 for people interested in a hands-off approach to crypto investing.
The fintech’s Crypto Indices allow both experienced and new investors to build a diversified crypto portfolio without having to do their own due diligence on specific crypto projects.
Initially, Bitpanda launched three different Crypto Index products – the BCI5, the BCI10, and the BCI25 – which auto-invest in the top 5, top 10, or top 25 cryptocurrencies based on their popularity measured by market size and liquidity.
Due to popular demand, Bitpanda has extended the existing offering. Its new Crypto Indices will offer investors the opportunity to invest in crypto projects in the areas of Metaverse, Infrastructure, Smart Contracts, and Decentralised Finance (DeFi) and allow them to keep track of the most important, fast-evolving crypto market trends.
This product extension focusing on industry trends expands Bitpanda’s industry-leading Crypto Indices offering while providing investors with a convenient way of investing in cryptocurrencies.
“We launched Bitpanda Crypto Indices as a game changer for all people interested in crypto, especially newer investors who didn’t know where to start building their crypto portfolios. ETFs tracking the world’s biggest markets had been growing in popularity for years, but there was no easy way to do the same with crypto. With the Bitpanda Crypto Indexes, we offered our customers the opportunity to get exposure to the crypto market and start investing in crypto. Now, it’s time for the obvious next step. These four new Crypto Indices give people the chance to invest in areas they are passionate about. There’s no hassle, no need to constantly research new crypto projects, just a simple way for everyone to diversify their portfolios”, stated Eric Demuth, Co-Founder and CEO of Bitpanda.
Diversified portfolios and full control
The new Crypto Indices allow investors to buy multiple assets in an emerging area they are passionate about, without the need to continually review and rebalance their portfolios manually.
To be more precise, the four indices will give investors access to:
- Infrastructure leaders - Coins supporting decentralised programmes designed to perform specific tasks;
- Metaverse leaders - Coins related to games, and social media;
- Smart Contract leaders - Coins supporting blockchain protocols that allow the hosting of self-developed and 3rd party apps;
- DeFi leaders - Coins related to financial services built on top of decentralised networks with no central intermediaries.
Crypto projects within each ‘basket’ are chosen based on the overarching theme, and balanced around market capitalisation. Each month, the indices are automatically rebalanced according to changes in the market based on calculations and reviews by MarketVector Indexes GmbH, the index division of the leading asset manager VanEck.
Bitpanda’s customers can buy, sell or swap the new Crypto Indices just like any other digital asset on the platform, with a tap of a button, simple and secure.
The majority of investors who already hold Bitpanda Crypto Indices combine them with a Savings Plan, allowing them to schedule the automated purchase of assets on a recurring basis.
Once a Savings Plan has been created, it automatically buys at the set time of their choice, allowing them to benefit from the cost average effect with maximum flexibility.
Photo credit: Bitpanda