IDX Insights, a research & development firm, announces the launch of the first investable factor crypto currency index, which is now available on SMArtX Advisory Solutions’ managed accounts platform. The IDX Crypto Opportunity Index (COIN), is designed to opportunistically allocate between cryptocurrencies and fixed income ETFs to by exploiting short-term momentum.
The index seeks to provide a risk-managed allocation option for investors who seek to use robust factor techniques to harvest attractive risk-adjusted returns from a volatile asset class.
Ben McMillan, founding partner and CIO of IDX Insights said, “As crypto-assets have emerged as an alternative asset class, we continued to question how to prudently deploy risk- capital in the space. While several long-only crypto-currency indexes exist, there were none that took a tactical approach to deploying risk-capital when the risk/return profiles look most favorable. Nascent asset classes often provide an opportunity for substantial returns but come with elevated volatility and considerable drawdowns; and bitcoin (and the other cryptocurrencies) have been no different. We’ve seen increased investor interest in the space but believe that a long-only approach simply doesn’t make sense for most investors.”
Evan Rappaport, founder and CEO of SMArtX Advisory Solutions said, “We have been seeing increased demand from Advisors who want to provide clients exposure to cryptocurrency but have been unable to do so due to the lack of custodial options and inherent volatility associated with the asset class. The IDX Crypto Opportunity Index can help to solve both of these issues. SMArtX was first to offer long/short strategies to advisors in a UMA structure and is proud to work with IDX to offer pioneering Crypto strategies to the advisor marketplace.”
With the prospect of economic and political uncertainty as well as historically low forward-looking real returns, investors are seeking strategies that can provide attractive returns – on both an absolute and risk-adjusted basis–and that are uncorrelated to global equity markets. The IDX Crypto Opportunity Index seeks to provide investors with access to an emerging, high opportunity asset class by harvesting attractive risk-adjusted returns by using proven, robust factor techniques.
The IDX Crypto Opportunity Index joins 16 other IDX indices currently available on the SMArtX Advisory Solutions platform. The existing indexes cover a wide range of investment strategies including fixed income, commodity, sector, and factor-based solutions.
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