Crypto Finance: Leading the way in analysing and managing this new asset class

Digital assets, and crypto in particular, have evolved in recent years from a niche topic to an emerging, widely accepted asset class. With the MiCA (Markets in Crypto Assets) regulation introduced this year, a regulatory framework is emerging for Europe. In the US, several bitcoin ETFs were introduced earlier this year. In addition, practical applications of blockchain technology, such as stablecoins and the tokenisation of assets, are gaining traction.

Crypto Finance Asset Management has been a pioneer in the management of crypto investment products since 2017, making a name for itself with innovative strategies. The CFMM and CFB3 indices represent a quantum leap forward in how crypto portfolios are managed, offering investors unparalleled opportunities for growth and diversification.

In addition to the Vinter/CF Web3 Index, the Vinter/CF Momentum Index, which went live just under a year ago and has since become one of the very best crypto strategies. The strategy’s unique approach is to combine price momentum with on-chain momentum analysis. While price momentum has been successfully applied for decades, for example, in equity investment strategies, on-chain momentum analysis is new and specifically targeted at crypto.

A key question for investors in the crypto space is: the crypto universe comprises thousands of coins – which ones should you invest in? More specifically, what are the ideal selection criteria? Our “on-chain” momentum approach answers this question by analysing the user rate of each blockchain. We invest in those coins that have a positive momentum in the user rate. The user rate is basically the driving factor for the success of blockchain protocols and their corresponding coins.

The CFB3 index is a testament to Crypto Finance’s commitment to innovation. Unlike any other on the market, this index embraces the principles of Web 3.0, tapping into assets that embody the ethos of decentralisation and digital ownership. By focusing on sectors such as the Metaverse, DeFi, and smart contract platforms, the CFB3 index provides investors with exposure to the future of the digital economy.

What truly sets these indices apart is their proven track record of success. With live performance data spanning nearly a year, both the CFB3 and CFMM indices have consistently outperformed expectations. Investors have witnessed first-hand the impressive returns generated by these indices, cementing their reputation as top-tier investment instruments.

The research-based approach we use for the CF Web 3.0 and CF Momentum indices is part of our philosophy to fundamentally understand and evaluate crypto as an asset class. To this end, we have developed a valuation framework that allows us to analyse blockchain protocols and determine metrics such as Price/Earnings ratios or discounted cash flows. We believe that concrete P/E ratios and other “traditional” metrics can be applied to crypto.

For more information about Crypto Finance Group and its ETPs, please visit www.crypto-finance.com or contact us at assetmanagement@crypto-finance.com.

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