Zerocap has made a significant leap in the Australian cryptocurrency landscape by launching the country’s first tailored crypto product linked to the CoinDesk 20 Index. This innovative step provides Australian investors with a unique opportunity to engage with a diversified portfolio of digital assets, moving beyond traditional investment avenues like exchange-traded funds (ETFs).
The CoinDesk 20 Index is designed to capture 90% of the digital asset market while strategically excluding memecoins, privacy tokens, wrapped assets, staked assets, and gas tokens. By focusing on established cryptocurrencies, the index offers a balanced approach for investors looking to navigate the complex world of digital assets. Currently, the index comprises 27.4% Bitcoin, 19.1% XRP, and 16% Ethereum, making it a robust option for those seeking exposure to major cryptocurrencies.
One of the standout features of the CoinDesk 20 Index is its quarterly rebalancing mechanism. This ensures that the index reflects current market conditions and maintains a diversified allocation that can adapt to changing trends. Over the past five years, the index has demonstrated impressive growth, boasting a remarkable 456% gain. As of February 2, the total volume of linked products reached an impressive US$13 billion (AU$20.45 billion), highlighting strong investor interest and confidence.
For investors looking for diversification, Zerocap’s new offering presents an exciting opportunity. The tailored crypto product linked to the CoinDesk 20 Index allows institutional investors to gain broader market exposure without being limited to just Bitcoin and Ethereum. Mark Hiriart, Zerocap’s Head of Sales, emphasized that this partnership with CoinDesk Indices introduces sophisticated investment options that were previously unavailable in the Australian market.
The demand for diversified digital asset exposure is growing rapidly among institutional investors. Alan Campbell, President of CoinDesk Indices, noted that this new product caters specifically to that demand. By providing access to a wider array of cryptocurrencies beyond Bitcoin and Ethereum, Zerocap is positioning itself as a leader in the evolving landscape of digital asset investment.
Moreover, Zerocap stands out as one of the few cryptocurrency firms in Australia that holds a derivatives license. This regulatory approval enables them to issue structured notes to investors—an essential feature for those looking to enter the market with limited downside risk and significant upside potential. The structured product offering allows investors to generate yield independently of market movements, making it an attractive option for risk-conscious investors.
As cryptocurrencies continue to gain traction globally, Zerocap’s launch of tailored crypto products linked to the CoinDesk 20 Index marks a pivotal moment for Australian investors. The ability to invest in a diversified portfolio that reflects the broader digital asset market opens up new possibilities for wealth generation and financial growth.
Currently, the CoinDesk 20 Index is trading at US$3,153.01 (AU$4,953.74), reflecting a slight decrease of 2.5%. However, it’s worth noting that nineteen out of twenty assets within the index are trading higher at this time. Notable performers include XRP (+9.4%) and XLM (+6.1%), showcasing resilience even amidst market fluctuations.
In conclusion, Zerocap’s launch of Australia’s first tailored crypto product linked to the CoinDesk 20 Index represents a groundbreaking development in the local cryptocurrency market. With its focus on diversification and structured investment options, Zerocap is poised to attract both institutional and retail investors seeking innovative ways to engage with digital assets.
