A collaboration between Crypto Finance and Vinter has resulted in two new innovative crypto ETPs.
Crypto Finance is a Swiss company that has been providing crypto and blockchain services to institutional and professional clients since 2017.
It has its own integrated platform that provides secure access to invest, manage, trade and store digital assets.
It aims to professionalise the emerging digital asset market through its expertise in the field.
The company has also received numerous awards and accolades, including being named one of the top 50 blockchain companies in Switzerland’s Crypto Valley and one of the top 100 start-ups in the country.
Vinter (Invierno AB), on the other hand, is a pioneering index provider specialising in cryptocurrencies.
The Swedish company aims to play a key role in the emerging crypto-ETF sector, gathering data on digital assets from hundreds of sources to turn proprietary investment strategies into investable products.
Vinter has developed the first crypto indices in the Nordic countries that have been approved by the European Securities and Markets Authority (ESMA).
Summary
The two new crypto ETP
Crypto Finance and Vinter have collaborated to launch two innovative cryptocurrency-related smart indices.
The first, called VCFMOM, is a weighting factor-based index that incorporates on-chain data such as the number of active addresses as a proxy for active users and price trends.
The other is called VCFWB3 and selects the crypto assets that are driving the Web3 advance, weighting them according to three factors: price momentum, social media interest and market capitalisation.
Both indices use data from the blockchain as investment factors to keep pace with the evolving crypto market.
In other words, they not only use data from the markets, but also go deeper by including some data that is usually used in so-called “fundamental analysis”.
These are therefore innovative indices, as this structure allows for more complex investment strategies that are adapted to the normal, very rapid changes in this sector.
The aim is to provide investors with a safe and regulated means of gaining differentiated exposure to the maturing cryptocurrency sector.
The comments
Vinter CEO Jacob Lindberg said:
“We are pleased to announce our collaboration with Crypto Finance, a prominent Swiss asset manager with an impressive track record in the e cryptocurrency industry. Vinter’s selection as the index provider for Crypto Finance’s inaugural two ETPs reinforeces our position as the leading provider of crypto indexes”.
Stefan Schwitter, head of asset management at Crypto Finance, adds:
“Developing VCFMOM and VCFWB3 with Vinter has been a truly enjoyable journey for us. Vinter has been instrumental in delivering fast, accurate, and highly customized indexes that meet the specific needs of our clients. We are excited to continue collaborating with Vinter and look forward to launching more innovative products”.
Crypto ETP
Financial derivatives such as ETPs offer a different approach to crypto investing.
Firstly, they do not require investors to take care of the custody of tokens or entrust them to a crypto exchange.
In addition, they are products available on traditional trading platforms that are already widely used by investors and traders, so they do not require them to use crypto platforms with which they may be unfamiliar.
Finally, as in this case, they allow their managers to devise even complex investment strategies that can be used by investors simply by buying similar derivative financial products.
In this case, it is definitely more difficult to find alternative native crypto instruments, except on decentralised platforms that operate in a completely unregulated manner.
Obviously, these are products that cryptocurrency purists will not like, but at the same time they may be more appealing to those who prefer to continue operating in fully regulated markets.
