This strategy is designed to objectively deliver the overall Crypto Asset market growth with sufficient depth to encompass a wide variety of the different sectors of the market including: Platforms, Currencies, Exchanges and Decentralised Finance (“DeFi”).
The strategy provides enough diversification to significantly reduce systemic risks associated with a market in its infancy. The strategy follows strict objective criteria to ensure an accurate reflection of the growth in the industry relating to advancements in the underlying Blockchain technology.
Each constituent must adhere to the following criteria:
1. Trade on at least 2 exchanges
2. Asset backed tokens / stable coins are excluded
3. Listed more than 3 months
4. A market capitalisation greater than $40m
5. Volume must exceed certain minimum liquidity requirements
The Top 50 constituents are selected based on a 3-month average market capitalisation ranking. At inception (1 November 2019), each constituent was allocated a 2% weighting. Thereafter, the strategy is rebalanced quarterly. Assets falling out of the Top 50 are replaced by new qualifying assets at a 2% weighting.