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Why crypto index funds matter
And what role Phuture plays in this space.
Crypto is a fascinating sector to invest in.
It has seen exponential growth in recent years, and the following ones will mark an exciting adoption cycle by individuals as well as institutional investors. We firmly believe it will grow 100, or even 1000 times larger than it is today. If you’re reading this, you probably agree!
But that doesn’t mean investing in crypto is simple and straightforward. In fact, it’s quite daunting.
Some of the main obstacles are:
- Drastic volatility
- Gas fees
- Time required on due diligence and research
- Irreversibility of transactions
- and many more.
All of these create friction, which in turn inhibits a large portion of investors (individual and institutional) from getting more exposure to the sector and reaping the benefits of early investing.
At Phuture, we’re building crypto index funds to help investors overcome these obstacles.
How index funds can help overcome these obstacles
Ride the trends, not the extremes
An index is a basket of assets, so it softens volatility without giving up returns. Index funds tend to perform better than individual assets in the long run.
Themed investments
You can leave the cherry-picking behind, we do the heavy lifting for you. We group the space into themes and evaluate the best projects so you don’t have to.
Save time
Save hours of research and time trying to track the market. Our index funds are built to follow the market so you can have peace of mind.
Avoid gas fees
It’s more cost-efficient to buy Phuture indices, and pay gas fees only once. Buying one of our index funds allows you to get exposure to multiple assets, without having to buy (and pay gas fees) for each one of them.
In short
For all the reasons above, index funds have an important role to play in facilitating the next billion crypto investors to enter the sector.
Index funds in traditional finance represent 18% of all investment allocations, while in DeFi it’s less than 1% at the moment. These numbers tend to converge in the future, and Phuture index funds will drive this growth.
How much indices represent in traditional finance vs. DeFi in 2022.