A collaboration between Swiss company Crypto Finance and Swedish pioneer index provider Vinter has resulted in two unique and innovative crypto exchange-traded products (ETPs). Crypto Finance specializes in providing cryptocurrency and blockchain services to institutional and professional clients since 2017. It has been awarded numerous accolades for its impressive work in the cryptocurrency industry, including being named one of the top 50 blockchain companies in Switzerland’s Crypto Valley and one of the top 100 startups in the country. On the other hand, Vinter, focusing primarily on the cryptocurrency sector, aims to provide a key role in the emerging crypto-ETF sector. It gathers data on digital assets from hundreds of sources to turn proprietary investment strategies into investable products.
The main objective of the partnership is to create products that overcome some of the challenges investors face when investing in cryptocurrencies using traditional methods. Crypto Finance and Vinter have collaborated to launch two innovative cryptocurrency indices. The indices aim to provide a safe and regulated means for investors to gain differentiated exposure to the rapidly maturing cryptocurrency sector. The first index, called VCFMOM, is a weighting factor-based index that incorporates on-chain data such as the number of active addresses as a proxy for active users and price trends. The other index, called VCFWB3, selects the crypto assets that are driving the Web3 advance, weighting them according to three factors: price momentum, social media interest, and market capitalization.
In developing these indices, both companies have utilized data from blockchain technology as investment factors to keep pace with the evolving crypto market. This includes data from the markets and also in-depth data that is typically used in “fundamental analysis.” These innovative indices allow for more complex investment strategies suited to the rapid changes in the cryptocurrency sector.
Jacob Lindberg, the CEO of Vinter, expressed his excitement over the partnership, stating, “We are pleased to announce our collaboration with Crypto Finance, a prominent Swiss asset manager with an impressive track record in the cryptocurrency industry. Vinter’s selection as the index provider for Crypto Finance’s inaugural two ETPs reinforces our position as the leading provider of crypto indexes.” Similarly, Stefan Schwitter, Head of Asset Management at Crypto Finance, added, “Developing VCFMOM and VCFWB3 with Vinter has been a truly enjoyable journey for us. Vinter has been instrumental in delivering fast, accurate, and highly customized indexes that meet the specific needs of our clients.”
The collaboration presents a different approach to crypto investing through financial derivatives such as ETPs. These derivatives do not require investors to take care of custody of tokens or entrust them to a crypto exchange. Moreover, they are available on traditional trading platforms that are already widely used by investors and traders, eliminating the need for using unfamiliar crypto platforms. Lastly, these products allow managers to devise even complex investment strategies that can be used by investors by merely purchasing derivative financial products similar to traditional financial services.
These products are likely to be less appealing to cryptocurrency enthusiasts as they operate within fully regulated markets. Nonetheless, the collaboration between Crypto Finance and Vinter provides an interesting alternative to traditional methods of investing in the rapidly growing cryptocurrency sector. By offering unique investment options and products, this partnership aims to further develop the market for digital assets and appeal to a wider range of potential investors.
