First Tokenized S&P Index Funds Launched on Securitize Markets
Securitize, the leading firm using blockchain to expand access to the capital markets, announced today the launch of two new tokenized funds tracking two of the most innovative indices from S&P Dow Jones Indices, the world’s leading index provider, a major milestone in institutional innovation and adoption of blockchain.
The S&P indices being tokenized and offered by Securitize are:
- The Securitize S&P Cryptocurrency Large Cap Ex-MegaCap Index, and
- The Securitize S&P Kensho New Economies Composite Index
The news is particularly significant because these are the first indices from S&P DJI — and the first funds based on indices from a major index provider — to be tokenized, demonstrating growing interest by leading financial institutions and demand from investors in adopting the benefits of blockchain technology, including easier access, greater efficiency, and much lower trading fees. The move is also in line with recent fund announcements and regulatory actions indicating that the tokenization of these funds is expected to be the beginning of a wave of fund tokenization over the coming year.
Accredited and institutional investors have access to S&P DJI’s indices in a tokenized format for the first time, at a low management fee of just 0.5%. The funds will be offered through Securitize’s digital asset management arm, Securitize Capital, and available on its alternative assets marketplace, Securitize Markets, alongside Securitize Capital’s existing Bitcoin and USDC yield funds. The funds are open for investment immediately and are tokenized using the Algorand blockchain protocol.
“S&P DJI’s innovation and leadership in tokenizing its indices is a major sign that institutions understand the many advantages of tokenization–from efficiency to easier investor access–and, I anticipate will be the start of a wave of tokenized funds over the coming months,” said Scott Harrigan, CEO of Securitize Markets. “Securitize Markets offers institutional, accredited and retail investors a diverse and growing range of tokenized investment opportunities under one roof, from equity in private businesses to yield funds to, now, index funds, and we couldn’t be more excited to work with S&P DJI.”
“S&P DJI is the world’s leading index provider, making the launch of these first tokenized S&P funds today a bold and important signal to the markets that S&P DJI intends to continue its leadership as traditional finance is quickly becoming digitized,” said Wilfred Daye, Head of Securitize Capital. “The new tokenized funds provide investors exposure to a diverse blend of cryptocurrencies and emerging technologies. In particular, they are a new, efficient option for family offices, institutions and accredited investors looking for exposure to promising cryptocurrencies and exposure to disruptive global companies.”
“We are excited to work with Securitize in tokenizing two of S&P DJI’s most innovative indices, the S&P Cryptocurrency Large Cap Ex-MegaCap and S&P Kensho New Economies Composite indices,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices. “These innovative benchmarks provide market participants with needed transparency into some of the most exciting emerging asset classes in cryptocurrency as well as companies propelling the fourth industrial revolution.”
The funds offer investors exposure to top-performing cryptocurrencies and emerging technologies.
The Securitize S&P Cryptocurrency Large Cap Ex-Mega Tokenized Fund is a tokenized version of the S&P Cryptocurrency Large Cap Ex-MegaCap Index, offering investors exposure to a diverse blend of top-performing cryptocurrencies, which rebalance based upon performance. The index fund has experienced an over 200% return year-to-date.*
The Securitize S&P Kensho New Economies Tokenized Fund is a tokenized version of the S&P Kensho New Economies Composite Index, providing exposure to global investments in emerging technologies such as fintechs, artificial intelligence, virtual reality, nanotechnology, and more. The index has achieved an approximately 27% annualized return over the past three years.*
Securitize is partnering with Anchorage Digital Bank, the only federally chartered crypto bank, as custodian, and Copper Technologies, and Interactive Brokers in investing in and managing the funds’ assets.
*S&P index returns as of 12/14/2021.
About Securitize Capital
Securitize Capital is a digital asset management firm offering actively managed, institutional-grade funds providing exposure to cryptocurrencies, emerging asset classes, and potential yield derived from lending activities. Securitize Capital is a subsidiary of digital asset securities leader Securitize, Inc, whose end-to-end platform expands business and investor access to the private capital markets. Securitize Capital’s investment offerings are available through Securitize Markets, LLC, an SEC-registered broker-dealer, member of FINRA and SIPC, and operator of the company’s alternative trading system, Securitize Markets.
Photo by Hans Eiskonen on Unsplash
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