Deus X Pay Unveils Tokenized Index Fund with Top 20 Crypto Assets
Key Takeaways:
- Deus X Pay index fund taps into the top 20 tokens in a bid to bring crypto to mainstream investing.
- The fund goes through monthly rebalancing and has a 10% max exposure rule for low risk.
Deux X Pay, a crypto-native firm, has launched its tokenized index fund that brings intended access to the fast-emerging digital-asset space. The fund is composed of the top 20 cryptocurrencies weighted by market capitalization.
Deus X Pay is a response to the increasing investor demand for regulated crypto products that offer sufficient liquidity, diversification, and mitigated risk, complemented by a low-cost fee structure.
The 10% Max Exposure Rule
In more detail, Deus X Pay ensures a diversified investment strategy by allocating capital exposure of no more than 10% on any one token at any given time. That way, no single asset is able to drag the balance deep into negative territory. Instead, the 10% max exposure prevents outsized bets, ensuring enough flexibility even in turbulent times.
Rebalancing to Capture Ranking Changes
On top of that, the fund undergoes monthly rebalancing to factor in changes in the rankings of crypto assets across the board. The novel asset class boasts a valuation of roughly $1 trillion. The top 20 tokens, including Bitcoin, Ethereum, and Dogecoin, make up about 90% of that figure. Bitcoin alone is carrying half of the entire market cap. The top 20 tokens, however, rotate with some dropping out and others coming in.
In this context, the monthly rebalancing aims to capture the newcomers while offloading the laggards. Deus X Pay increases its investment in those tokens that show elevated potential for gains. Simultaneously, it reduces its exposure to underperformers, i.e., those coins that are seeing their valuation chipped away.
Daily Liquidity for Continuous Deal Flow
Liquidity-wise, the index fund is able to guarantee continuous liquidity on a daily basis. This uninterrupted deal flow allows investors to rotate their portfolio as they see fit, while adhering to the 10% max exposure rule.
Brights Prospects for Deus X Pay Growth
Red Acre Ventures is excited to be backing a pioneer in the investment space. Deus X Pay is paving the way for crypto to enter the luxury market by offering a seamless fiat-to-crypto payment platform. Subsequently, Deus X Pay’s off-ramp, crypto to fiat, works just as smoothly as its on-ramp solution.