For investors considering an allocation to cryptocurrency but aren’t sure where to start or which cryptocurrency is appropriate for their portfolio, we believe that an allocation to a diversified basket of the largest most liquid cryptocurrencies is a great place to start.
As discussed throughout this series of blog posts, a true multi crypto strategy that allocates to more than just bitcoin and ether allows investors to reduce unique idiosyncratic risk by accessing newer and differentiated technologies while increasing diversification through a basket of cryptocurrencies.
The use of intelligent index construction by the application of a smoothed capitalization redistributed weighting, clearly defined exclusionary rules and minimum listing and liquidity criteria were designed to enhance diversification from the core of bitcoin and ether without impacting tradability.
We are pleased to announce the launch of the Arxnovum Multi Crypto Index Fund. Today, institutions, family offices and high net worth investors now have access to a diversified portfolio of cryptocurrency designed to represent the cryptocurrency market. We would be grateful to hear from investors that are interested in exploring the merits of adding a diversified crypto fund to a traditional portfolio.
For more information around how to determine the appropriate allocation to cryptocurrency within your portfolio, please contact Arxnovum Investment for an assessment of your goals, objectives, time horizon and risk tolerances.
The products and services offered by Arxnovum are available to qualified investors in certain provinces and territories of Canada. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. All investments contain risk and may lose value. Investing in the cryptocurrency market is subject to risks. Cryptocurrency, often referred to as “virtual currency” or “digital currency”, operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. Cryptocurrency operates without the oversight of a central authority or the banks and is not backed by any government. Even indirectly, cryptocurrencies such as bitcoin may experience high volatility, and related investment vehicles may be affected by such volatility. Cryptocurrency is not legal tender. Federal, state, provincial, territorial or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in North America is still developing. Cryptocurrency trading platforms may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware, which could have an adverse impact on the net asset value per unit of the Fund. Please consult the Funds Term Sheet for a complete list of risks. Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what Arxnovum Investments Inc. and the portfolio manager believe to be reasonable assumptions, neither Arxnovum Investments Inc. nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.