Sygnum launches the first phase of its crypto sector investment strategy, a range of rules-based sector indices and tools designed to meet the evolving needs of institutional investors.
- Launch of first set of institutional-grade indices for 7 core and 38 emerging crypto sectors, tracking an expanding universe of 21,000 protocols
- Empowers institutional investors with a smart toolset to analyse, compare and track the performance of complex and diverse crypto market verticals
- Multi and single sector investment solutions based on Sygnum crypto sector indices to be rolled-out from Q1 2023 for professional and institutional clients
Sygnum has leveraged its crypto community involvement and regulated digital asset banking experience to launch the first institutional, rules-based crypto sector indices framework. It tracks the performance of 21,000 individual crypto protocols, and uses a rules-based system to filter and allocate into 7 core and 38 emerging crypto sectors. They enable investors to conduct in-depth analyses into core and emerging sector use cases, compare relative market capitalisation and performance as well as identify, rank and track leading protocols.
The Sygnum research report “Crypto Sector Indices” and crypto sector snapshots can be downloaded here.
A comprehensive range of multi and single crypto sector investment solutions leveraging the core sector indices will be rolled-out from Q1 2023 for professional and institutional investors. They include:
- Layer 1 Foundations – base layer protocols that pioneered decentralised money and provide a foundation for applications, including Bitcoin, Ethereum and Cardano
- Layer 2 Efficiency – scaling, transaction speed and cost optimisers, including Polygon, Stacks and ImmutableX
- DeFi – borrowing, trading, lending, insurance and asset management applications including Uniswap, Aave and Maker
- Web3 – infrastructure and application protocols for the new decentralised internet, including ICP, Filecoin, Chainlink and The Graph
- Gaming – protocols enabling full ownership of in-game assets and economic models favourable to gamers, including Apecoin, STEPN and Axie-Infinity
- Metaverse – protocols building immersive, decentralised 3D worlds, including Decentraland, GensoKishi-Metaverse and The Sandbox
- CeFi – tokens issued by centralised crypto industry players like KuKoin, Huobi and Cronos to raise capital and exchange value with tokenholders
Crypto project numbers, types and use cases have grown exponentially, making sector selection an increasingly complex and technical challenge for investors. Recent market turbulence has also underlined the need for heightened transparency to manage risks. By using a sector-based approach commonly used in traditional finance, Sygnum enables investors to align and execute hybrid investment strategies flexibly based on their market outlook. For example, Layer 1 Foundation sectors can be allocated during periods of risk-off sentiment, and weighting for growth-oriented sectors like the Metaverse can be increased as market conditions improve.
“The Sygnum crypto sector indices set new standards for institutional analysis, transparency and understanding of the crypto market. These unique new tools trace the evolution of the crypto space in real time and form the foundation for our next generation of targeted crypto sector investments,” says Katalin Tischhauser, Sygnum Bank Head of Research.
Sygnum is the world’s first digital asset bank, and a digital asset specialist with global reach. With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum empowers institutional and private qualified investors, corporates, banks, and other financial institutions to invest in the digital asset economy with complete trust. Sygnum operates an independently controlled, scalable, and future-proof regulated banking platform. Our interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts is shaping the development of a trusted digital asset ecosystem. The company is founded on Swiss and Singapore heritage and operates globally.
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