Share this article
Bitcoin 2.0: Seeking Alpha
New Index Helps Investors Navigate the Crypto Seasons
Jul 1, 2024, 6:54 p.m.
Make us preferred on Google
While spot ETFs have dominated the headlines, other innovative indices and products are also being launched. Spot ETFs provide beta exposure to an asset, but what are the alternative ways to access bitcoin beyond beta?
Recently, AMINA Group and CoinDesk Indices launched the AMINA CoinDesk BTC Momentum Index (Ticker: BTIAMINA), which aims to provide dynamic exposure to bitcoin by shifting to cash (USD) when price trends are unfavorable.
STORY CONTINUES BELOW
BTIAMINA measures the performance of a strategy that dynamically allocates between exposure to bitcoin and cash based on the CoinDesk Bitcoin Trend Indicator (BTI), a quantitative signal which conveys the presence, direction, and strength of the trend in the price of bitcoin using a purpose-built algorithm.
The chart below showcases a BTIAMINA backtest against the CoinDesk Bitcoin Price Index (XBX) from 1/1/2018 to 6/27/2024.
Key features of the AMINA CoinDesk BTC Momentum Index include:
- Investment Universe: The index allocates between bitcoin and cash, providing flexibility in response to market conditions.
- Rebalancing Frequency: Weekly rebalancing ensures timely adjustments based on market trends.
- Momentum-Based Signals: BTI uses four moving average pairs to generate trend signals. The final signal is an average of these pairs, which the index then uses in a dynamic allocation strategy ranging from 0% to 100% bitcoin exposure.
- Risk Management: Designed to reduce sharp drawdowns and mental biases associated with bitcoin investing, aiming for higher risk-adjusted returns.
- Transparency: Fully transparent and systematic methodology, ensuring clarity and trust for investors.
“Partnering with industry leader CoinDesk Indices to launch the BTIAMINA is a landmark development for the broader crypto investment community,” said Gregory Mall, Head of Investment Products & Solutions at AMINA Bank. “This index is a testament to our commitment to innovation and excellence in the digital asset space. We are providing professional investors with a sophisticated tool to navigate the complexities of the bitcoin market with greater confidence and precision. The BTIAMINA Index not only aims to enhance risk-adjusted returns but also reduces the psychological hurdles associated with direct bitcoin investments.”
For more details on the BTIAMINA Index visit the website.
This article was written by CoinDesk Indices and is not associated with CoinDesk editorial.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Crypto Long & Short: Risk Ratings: DeFi’s Maturity Test
In this week’s Crypto Long & Short Newsletter, Marcin Kazmierczak writes on risk ratings and how they are central to capital being deployed on-chain. Then, Andy Baehr says Bitcoin has some 'splaining to do.
What to know:
You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.
Top Stories
