MV Index Solutions (MVIS), and financial technology company Amun have launched the Amun Crypto Basket Index (ticker: HODL5), a digital assets index designed to accurately track the top crypto assets.
The Amun Crypto Basket Index tracks the performance of the top five crypto assets in terms of market cap and liquidity, providing diversified exposure to the crypto space while using its proprietary methodology to effectively manage the volatility associated with less liquid or smaller crypto assets.
Amun writes that its quant-driven volatility management methodology aims to provide best-in-class return/risk profile and performs better than comparative peer indices. According to back-tested data, since January 1st, 2017 until August 31st, 2018, the Amun Crypto Basket Index has generated 2046 per cent in absolute return, compared to 751 per cent in Coinbase and 827 per cent in Bitwise’s Hold 10.
In addition, while providing the smallest tracking error against the MVIS CryptoCompare Digital Assets 100 Index – which provides a broad market benchmark – for the same period, the Amun Crypto Basket Index generated the highest Sharpe ratio, a measure for volatility-adjusted return, at 19.03, compared to Coinbase at 7.62 and Bitwise’s Hold 10 at 8.78.
Amun plans to further develop a number of financial products powered by this index as well as create future indices.
“Cryptocurrencies have taken the world by storm since last year,” says Thomas Kettner, Managing Director at MVIS. “Amun’s approach with a forward-looking and volatility adjusted weighting scheme is an enhancement of existing concepts and a valuable alternative for investors who do not want to follow the crowd.”
“We’re very excited to partner up with MVIS to create a reliable crypto index that avoids some of the drawbacks of crypto investing,” says Hany Rashwan, Chief Executive Officer at Amun. “Our proprietary methods have already shown superior returns compared with other indices and we look forward to building additional products that continue to push the envelope on crypto investing.”
