by Jamie Holmes
The upcoming DLT10 Index will make investing in cryptocurrencies feel more familiar and more akin to traditional asset classes. By tracking the top ten public blockchains the cryptocurrency financial index, announced by DLT Financial Group and London-based fintech company Tramonex, will provide informational value and exposure to some of the largest cryptocurrencies.
While many bitcoin-based financial instruments have emerged, ranging from ETF’s and futures contracts, the DLT10 Index represents a new trend toward gauging the performance of the general cryptocurrency market, indicating the increasing maturity and public interest in the sector.
By attracting more traditional investors to cryptocurrencies, who are more accustomed to trading stock indices, such as the S&P 500, Eurostoxx 50 or FTSE 100, the cryptocurrencies part of this fund may enjoy a consistent and stable increase in their value. The ten cryptocurrencies included in the DLT10 Index are bitcoin, ether, Ripple, Stellar’s cryptocurrency ‘lumens’, litecoin, dogecoin, SafeCoin, Namecoin, Factoids, and NXT.
While bitcoin, litecoin and dogecoin have been around for a while, SafeCoin is relatively new as well as Stellar. Safecoin is described as the “engine of the SAFE network” for MaidSafe, which are provided as an incentive to users to give their resources such as CPU power, bandwidth and online time to encrypt chunks of data.
Stellar, on the other hand, is focused on payments and facilitates low-cost financial services with an ambition to eradicate poverty. Financial services giant Deloitte has partnered with the Stellar to develop new services, which is a strong seal of approval from the financial sector. Lumens serve to prevent spam on the network and facilitate multi-currency transactions. Another unique feature is that Lumens are given away to reach a wider audience. Somehow these Lumens have ended up on exchanges
By including some of the most widely-known, innovative cryptocurrencies that rely on a public blockchain, the DLT10 Index looks to deliver as a consistent and stable investment vehicle.
As the co-founder of DLT Financial and Tramonex CTO, Dave Askey explains:
“Crypto-currencies and the blockchain are growing at a terrific pace, with equity investment into blockchain companies growing from $2 million in 2012 to $490 million in 2015. It has become clear that these technologies are here to stay and that their impact will be significant, yet the asset class is still vastly underinvested because of how technical it is today. DLT10 and its corresponding tracker fund will allow more people and institutions to invest in this asset class by providing a familiar, simplified investment model.”
Tramonex CEO, Amine Berraoui, highlights that the index should reduce both the complexity and opacity of the emergent cryptocurrency asset class;
“Tramonex is very pleased to collaborate with DLT Financial for the launch of its DLT10 index and fund. We see this as a continuation of Tramonex’s role in bridging the traditional and institutional side of finance with innovative technology. Our main goal is to position cryptocurrencies as a new asset class for the investment community, and to provide greater access to this still complex and opaque investment class, and DLT Financial is taking a further in this direction.”
The fund is set to launch in the next few weeks. However, few details are available on the functioning of the fund, which could become available closer to the launch.