Investr launches crypto index targeting retail investors

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Mobile investing application Investr has announced the launch of its cryptocurrency index. While many similar indices target institutional investors, Investr is targeting retail investors. It will help them assess the impact that investing in cryptos will have on their portfolio.

Investr is an application that lets its users invest in the stock market. It provides users with research on the stock market, allowing them to make informed decisions. It also allows them to engage in fractional share trading where there is no minimum investment.

In its press release, Investr stated that the index will include digital assets as well as utility tokens. Their weight in the index will be calculated according to their market volatility. This is unlike in most other indices which use a crypto’s market capitalization. The weights will be adjusted dynamically every three months. To qualify for addition into the index, a crypto asset must show a “determined level of price maturity.”

The index contains 18 cryptos, all of whom have been carefully selected and will be reviewed for rebalancing. They include the usual suspects such as Bitcoin Core (BTC), Bitcoin Cash (BCH), Ethereum, Monero, Litecoin, Zcash and Ripple. Qtum, Verge and NEM were also included, with TenX being the surprise inclusion.

Retail-Oriented Approach

The index will be retail-oriented in line with the app’s business model. Investr allows retail investors to buy stocks for as little as a few dollars through fractional share trading.

The firm’s CEO, Kerim Derhalli, said that this approach will greatly help a group that many other firms ignore. A former head of equity trading at Deutsche Bank, he sees this as a perfect accompaniment to their app. He stated:

“Retail investors want to know whether they should be invested in cryptocurrencies and what the impact of that investment will be on their portfolios. Traditional indices measure impact on the asset class, not an investor’s portfolio. […] This is not a relevant consideration for smaller investors who want to know what the impact will be on their portfolios.”

The firm also recognized the benefits that holding cryptos can have on an investor’s portfolio. According to the firm’s analysis, a modest exposure to cryptos can “both improve the return of the portfolio as well as reduce the volatility of its returns.”