If you’ve ever taken a Finance 101 course, you probably learned that you need to diversify your investments. This means that even if you really think that a certain asset will take off, whether it’s real estate in Manila or some obscure alt-coin, you should never place all your eggs in one basket.
However, as a cryptocurrency investor, you quickly realize the complexity of diversifying your crypto portfolio. Every coin means securely keeping track of another private key. You’ll also want to be registered on several exchanges for quick liquidity, which brings with it the hassle of onboarding and all the KYC/AML that comes with it.
Just imagine, you want to diversify your portfolio across the top 20 crypto assets. Now, one of those 20 takes a nosedive, and you want to re-balance your portfolio. Are you going to buy and sell specific amounts of each of your 20 coins? And what scientific strategy will you use for doing so? At this level, it’s practically infeasible to actively manage and re-balance even just your own personal portfolio across many assets.
Fortunately, there’s a solution so that something as simple as diversifying your investments doesn’t have to be a huge headache: Tokenized funds. Tokenized funds are pretty self-descriptive, they tokenize a fund such that you can invest in a single token, getting a share of the returns of a whole fund.
In keeping with the example of diversifying your investments across the top 20 crypto assets, one tokenized fund that lets you do this is CRYPTO20, the first tokenized cryptocurrency index fund by Invictus Capital (and in the world). Invictus Capital manages a number of other funds, like CRYPTO10 Hedged, a Margin Lending Fund, and a tokenized VC fund.
What’s nice about CRYPTO20 is its simplicity — you can invest in a single token, C20, without any platform fees, broker fees, or advice fees. In the true spirit of blockchain, it’s a dis-intermediated, democratized way of controlling your own assets, or money in this case.