Ethereum successfully implemented its long-awaited Shapella upgrade, enabling validators to unstake their previously locked ETH. Enabling ETH withdrawals has reduced the liquidity risk for investors, particularly institutions. Otherwise, the banking instability partly contributed to bringing positive returns to BTC. Investors must remember that one of Satoshi Nakamoto’s goal for creating Bitcoin was to build an alternative system to exchange value online outside of central banks’ control.
This month has been busy for Vinter’s product team with the release of 4 new indexes in partnership with Global X and Trakx. Global X picked Vinter to launch its digital asset investment suite and officially release at the end of April: GXMC (a mega-cap index), GXLC (a large-cap index), and GXMDC (a mid-cap index). GXMC has had a particularly positive month with returns reaching 4%, mainly due to the fact that it is only composed of BTC and ETH. Trakx launched its second index, TRXESG, the first-ever ESG index. The negative returns during April can be explained by the performance of Cardano (ADA) and Polygon (MATIC), which account for around half of the index. TRXESG’s inception/base date is January 1st, 2023, hence why yearly returns cannot be displayed yet.
Here is a quick description of each index in the table, with links to the relevant methodology.
- VNMC10: Vinter Top 10 market cap weighted.
- VNEQ10: Vinter Top 10 equal weighted.
- VNEQ5: Vinter Top 5 equal weighted.
- VNMC5: Vinter Top 5 market cap weighted.
- HODLX: Top 10 market cap weighted.
- HODLV: Top 5 equal weighted.
- ALTS: Top 10 excl. the largest two assets, market cap weighted.
- LAY1: The largest layer1 crypto assets, market cap weighted.
- DEFII: 50% DeFi dApps and 50% DeFi blockchains, then market cap weighted within each set.
- MOON: Top 10 layer 1 assets weighted by Github, Social and market data.
- BOLD1: Bitcoin and gold, equal risk weighted.
- VDAB10: Top 10 capped market cap weighted.
- VTRXBC: Top 10 smart contract platforms, market cap weighted.
- PANDO6: Top 6 weighted by the square root of market cap.
- DDV30: Top 30 market cap weighted.
- VHASHMOM: Top 12 by market cap weighted by their momentum score times their risk parity score.
- STAKE: Top 10 of the largest staking protocols by current market capitalization including staking rewards.
- BTCC: Bitcoin Covered Call, go long BTC and sell an out-of-the-money call option.
- KVQ: Equal-weighted index selecting high-quality assets from an investor perspective among the top 30 by market cap.
- TRXESG: Top 10 ESG-rated assets, current market cap-weighted with a maximum weight of 25%.
- GXMC: Top 2 by 90 days average market capitalization, equally-weighted.
- GXLC: Top 5 by 90 days average market capitalization, current market cap-weighted with a maximum weight of 40%.
- GXMDC: Top 10 by 90 days average market capitalization starting from the asset ranked #3, current market cap-weighted with a maximum weight of 40%.
The reference rates (“Ref rate”) are calculated using Vinter’s single-asset reference rate methodology.
