Invstr, an app meant for investors, has announced the new launch of a crypto index for the investing platform. As per a recent press release put out by the company, the users of the Invstr app can now follow crypto market data directly from the app itself.
It is no secret that the crypto market is one marked with intense volatility. Hence, integrating access to crypto market news can help users plan their investments with greater foresight and accuracy. The index will allow users to access a varied range of virtual asset categories. These would ideally include utility tokens, asset and payment.
Kerim Derhalli, the Chief Executive Officer or CEO of the company 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. If you are a large fund manager you want to know what impact you will have on the market when you enter or exit an asset class. This is not a relevant consideration for smaller investors who want to know what the impact will be on their portfolios. The Invstr Crypto Index addresses this by using weightings that optimise risk-reward based on the volatility of the constituent assets”.
Every quarter, the company will review the availability of cryptocurrencies on the Invstr app to make sure all the new, popular and stable crypto coins are a part of the set of offerings. Similarly, irrelevant cryptocurrencies, especially those that are suspended and too volatile, will be pruned quarterly. Naturally, the top coins of the market, such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin etc. are all available in the app
With regard to the benefits of having diverse crypto options available to users, the press release said:
“Invstr has analysed the benefits of holding cryptocurrencies in a diversified portfolio. This analysis demonstrated that a modest exposure to cryptocurrencies in a diversified portfolio can both improve the return of the portfolio as well reduce the volatility of its returns. In choosing appropriate weightings for the index, the Invstr Crypto Index departs from traditional market-capitalisation weighting methodologies and uses instead the volatility of each of the constituent parts.”