CRYPTO20 provides a way to track the performance of the Crypto markets as a whole by holding a single crypto asset. Index funds have consistently beaten the average managed fund since their inception.

The C20 tokens are directly tied to the underlying assets with a unique liquidation option in the smart contract. This protects the asset price and ensures it is never able to fall below the token’s share of the underlying assets.

The CRYPTO20 index fund’s lowest weighted constituents
would be approximately 1% of AUM on average [20]. This
equates to $750,000 on a fund AUM of $75m. The lowest
market-cap coins in the index have average daily trading
volumes of approximately $5-20m, as evident in Table
1. The amount immediately purchasable was calculated
automatically by the CRYPTO20 exchange service via the
ingestion of order book data from the utilized exchanges.
Adding a coin thus generally necessitates the purchase of
only 3% to 15% of average daily trading volume, while
the Vanguard S&P500 index fund has to contend with the
purchase of 200-500% of the average daily trading volume.

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