Compass Financial Technologies launches index offering DeFi exposure
As institutional interest in cryptocurrencies and DeFi continues to grow, many companies have launched a variety of indexes tracking the performance of tokens and companies relevant to the sector. Companies including Coindesk, Grayscale, Bloomberg, Galaxy Digital, and more are already offering several products tracking the DeFi industry.
Joining the list, Swiss-based index provider Compass Financial Technologies has launched an index tracking the performance of ten DeFi tokens, the company announced Tuesday.
A third of the index, called the ‘Compass Crypto Basket Fundamental DeFi Index (CCBFDEFI),’ will track the performance of Uniswap (UNI), followed by Aave (AAVE, 13.6%), SushiSwap (SUSHI, 12.2%), LoopRing (LRC, 11.3%), Yarn Finance (YFI, 9.8%), Compound (COMP, 6.8%).
Launched in 2017, Compass Financial Technologies offers indexes with exposure to crypto-assets, commodities, real estate, and more. It has since reached more than $5 billion in assets under management.
The latest DeFi index offering will provide a maximum weighting of 35% for any given token, with the group of assets selected every month. Compass will select ten tokens out of the 20 DeFi tokens it has approved to list as components of the index.
Guillaume Le Fu, CEO of the company, pointed out that DeFi indexes are now high in demand amongst institutional investors. “Incorporating fundamental metrics in index creation offers investors the possibility to allocate in the most efficient DeFi tokens based on rational economic indicators.” Le Fu noted.
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