Securitize, an investment manager that uses blockchain to expand access to the capital markets, has launched two new tokenised funds tracking two of the most innovative indices from S&P Dow Jones Indices, the world’s leading index provider, a major milestone in institutional innovation and adoption of blockchain.
The S&P indices being tokenized and offered by Securitize are the Securitize S&P Cryptocurrency Large Cap Ex-MegaCap Index, and the Securitize S&P Kensho New Economies Composite Index.
Why is this news important?
The news is particularly significant because these are the first indices from S&P DJI – and the first funds based on indices from a major index provider – to be tokenized, demonstrating growing interest by leading financial institutions and demand from investors in adopting the benefits of blockchain technology, including easier access, greater efficiency, and much lower trading fees.
The move is also in line with recent fund announcements and regulatory actions indicating that the tokenisation of these funds is expected to be the beginning of a wave of fund tokenisation over the coming year.
Securitize Capital is a digital asset management firm offering actively managed funds providing exposure to cryptocurrencies, emerging asset classes, and potential yield derived from lending activities. Securitize Capital is a subsidiary of digital asset securities leader Securitize, Inc, whose end-to-end platform expands business and investor access to the private capital markets.
So what’s on offer?
Accredited and institutional investors have access to S&P DJI’s indices in a tokenised format for the first time, at a low management fee of just 0.5%. The funds will be offered through Securitize’s digital asset management arm, Securitize Capital, and available on its alternative assets marketplace, Securitize Markets, alongside Securitize Capital’s existing Bitcoin and USDC yield funds. The funds are open for investment immediately and are tokenised using the Algorand blockchain protocol.
“S&P DJI’s innovation and leadership in tokenising its indices is a major sign that institutions understand the many advantages of tokenisation -from efficiency to easier investor access – and, I anticipate will be the start of a wave of tokenized funds over the coming months,” said Scott Harrigan, CEO of Securitize Markets. “Securitize Markets offers institutional, accredited and retail investors a diverse and growing range of tokenised investment opportunities under one roof, from equity in private businesses to yield funds to, now, index funds, and we couldn’t be more excited to work with S&P DJI.”
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What do the tokenised funds provide exposure to?
The new tokenised funds provide investors with exposure to a diverse blend of cryptocurrencies and emerging technologies. In particular, they are a new, efficient option for accredited investors looking for exposure to promising cryptocurrencies and exposure to disruptive global companies.
The funds offer investors exposure to top-performing cryptocurrencies and emerging technologies.
The Securitize S&P Cryptocurrency Large Cap Ex-Mega Tokenized Fund is a tokenised version of the S&P Cryptocurrency Large Cap Ex-MegaCap Index, offering investors exposure to a diverse blend of top-performing cryptocurrencies, which rebalance based upon performance. The index fund has experienced an over 200% return year-to-date.
The Securitize S&P Kensho New Economies Tokenized Fund is a tokenised version of the S&P Kensho New Economies Composite Index, providing exposure to global investments in emerging technologies such as fintechs, artificial intelligence, virtual reality, nanotechnology, and more. The index has achieved an approximately 27% annualised return over the past three years.
Securitize is partnering with Anchorage Digital Bank, the only federally chartered crypto bank, as custodian, and Copper Technologies, and Interactive Brokers in investing in and managing the funds’ assets.