BTC experienced a decline this month as a result of a “congestion” on the network, as signaled by the network’s soaring transaction fees. It consequently, triggered some exchanges, notably Binance, to pause all withdrawals. ETH benefited from BTC’s temporary issue and surfed on a revitalized investor confidence thanks to its successful unstaking protocol upgrade in April. Despite gaining some market dominance over BTC, ETH closed with neutral monthly returns. As far as XRP is regarded, Brad Garlinghouse, CEO of Ripple, teased on Twitter that the case with the SEC should be resolved in a matter of weeks rather than months, which positively impacted the price of the asset.
May has been another memorable period in terms of crypto ETP launch. VCFMOM, VCFWB3 and VVTOP10 join the growing family of smart crypto indexes developed by Vinter. Hashdex’s momentum index (VHASHMOM) secured the top position in terms of monthly returns due to its strategic allocation of approximately 45% of the overall portfolio towards XRP, ETH, and TRX. Interestingly, BOLD1 has been navigating the current market conditions with brio as its positive quarterly and yearly returns can attest. Gold and Bitcoin are surreptitiously coming back under the spotlight as trust in the financial system keeps getting eroded.
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.
- 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%.
- VCFMOM: Selects assets from the Top 15 by current market capitalization and weighs them according to a combination of their on-chain activity and the price momentum.
- VCFWB3: Selects as many assets driving WEB 3.0 that can be listed, and weighs them by their Asset Score which is a linear combination of market capitalization, momentum, and social media interest.
- VVTOP10: Top 10 by 30-day average market capitalization, 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.
