With the crypto-currency market currently flooded with over 1,000 digital assets, making a decision in relation to choice investments among this list is becoming a little bit overwhelming for most.
Two recent ICOs, however, are seeking to position themselves as market leaders in the crypto portfolio space by proposing new products that will incorporate the principles of traditional finance of portfolio management and diversification.
ICO Index-Fund Model
Slated to launch on December 1st, Aggregated Coin (AGRE) and UpStart1K (UP1K) are two ICOs providing index-type products that are aiming to raise capital from a token sale whose contributions will finance a closed portfolio fund whose constituents are drawn uniquely from the cryptocurrency world.
The AGRE token will be pegged to a basket of the top six crypto-coins by market value – currently Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin and Dash – which will be actively managed with rebalancing in line with practices within traditional index-fund management.
UP1K, another ICO start-up and linked to the same team as the AGRE project, focuses on smaller coins drawn from the full universe of crypto-currencies, with a basket of 130 actively managed currencies in the portfolio.
The two start-ups appear to be part of a growing wave of start-ups managed by professionals who have migrated from traditional finance, bringing with them business models imported from the same space.
Whilst the two start-ups appear to represent a growing wave of similar portfolio management ventures within the ICO universe, it is unclear at this stage how these ventures and similar outfits will be able to approach the research aspects of their project propositions.
Researchers within traditional finance are able to take advantage of a plethora of services from within the market data arena that facilitate the provision and analysis of data.
Both the cryptocurrency and ICO phenomena, on the other hand, are still in their infancies, operate in a legislative void with no reporting standards and without a support network of satellite services that traditional finance has enjoyed for a long time – Bloomberg, Thomson/Reuters and S&P all provide a range of market data, analytical and media services that aspiring ICO fund managers will have to learn to cope without.