An index for 10 Decentralized Finance (DeFi) tokens called the “Compass Crypto Basket Fundamental DeFi Index” (CCBFDEFI) has been created by a Swiss fund manager. The company was created in 2017 and provides indices and services for cryptocurrency, commodities, multi-assets, and real estate. It manages around $5 billion in financial products based on its indexes.
The CCBFDEFI went live on February 22nd and gives institutional exposure to a collection of ten DeFi tokens that are individually weighted based on “liquidity, market capitalization, and protocol revenue metrics” as well as on-chain data.
The maximum weighting for any given token is set at 35%, and the group of assets is selected monthly. Each month, the company lists more than 20 tokens that can be used to make up the Index. These include UniSwap (UNI), Compound (COMP), Aave (AAVE), and SushiSwap (SUSH).
Guillaume Le Fur, the CEO of Compass Financial Technologies, said that the demand for institutional crypto exposure is growing “substantially” as businesses look for legal ways to invest in the industry.
The CCBFDEFI is now available on the firm’s website, as well as on Bloomberg and Refinitiv, and is compliant with EU Benchmark Regulations (EU BMR). Under a licence agreement with Compass Financial Technologies, the product is also available for use.
This partnership with CoinShares was announced late in January. Compass Financial Technologies will use its indices to help CoinShares Physical Exchange-Traded Products (ETPs), which have no management fees and reward investors who stake their coins.
In April of last year, the company released a set of EU BMR-compliant crypto indexes. These indexes cover everything from reference prices to smart risk management and volatility targets.