One week after closing a $52 million Series A investment round, Bitpanda today announces the launch of its Cryptocurrency Index, Bitpanda Crypto Index (BCI), which will allow customers to buy various assets in a regulated manner.
Users will be able to buy the best 5, 10 or 25 cryptocurrencies with just a few clicks and the portfolio will automatically balance each month based on liquidity, volatility and market size. There will be three different indices BCI5, BCI10 and BCI25, depending on the number of cryptocurrencies you want to invest in.
The monthly rebalancing will be done thanks to calculations and revisions of the MVIS Index Solutions, the division of the VanEck indices.
Investing in more cryptocurrencies could help to decrease risks, but at the same time it dilutes investments on many more assets.
Bitpanda’s crypto index
The Bitpanda Crypto Index comes at a time when, according to the press release, the demand to invest in cryptocurrency is increasing and there is a need for solutions to invest in an easy way.
This solution is aimed at a target of non-experts or at those who want a sort of broker that manages their finances automatically.
Eric Demuth, co-founder and CEO of Bitpanda, said:
“With the Bitpanda Crypto Index, our first regulated product, we‘re proud to be launching a game-changer that brings the world one step closer to the mass adoption of cryptocurrencies. The key to doing this is removing complexity from crypto investing and that’s just what we’ve done. Apart from making crypto investments super easy, our Indices will help you build a diversified portfolio of assets by tracking the market as a whole. Think of it as a more grown-up, guess-free version of crypto investing. When the market changes – so does the Index – swapping out assets each month to maintain investments. It’s a hands-off, stress-free approach to crypto investing.”