DLT Financial To Launch Top 10 Cryptocurrency Index

According to Yahoo Finance, a London-based startup named DLT Financial said it will launch a fund to track an index of the top ten cryptocurrencies on the market — one of them of course being Bitcoin.

Also read: Accenture and EY Making Moves to Grow Blockchain Technology

DLT Financial: New London-Based Cryptocurrency Index Fund

Recently rebranded from Tramonex, DLT Financial is a fintech company that aims to make virtual currencies an enticing asset class for investors.

The firm has received a 250,000 GBP ($333,000 USD) grant from the UK government to develop a working prototype of their proposed index. The fund will track 10 different cryptocurrencies including Bitcoin, Ether and Ripple.

Dave Askey, co-founder of DLT Financial and chief technology officer of Tramonex, stated during the announcement:

We’re really looking to bridge the gap between the existing blockchain world of tech and the more traditional institutional investment community.

Askey said currently it’s difficult to invest in these products without deep technical knowledge of how to manage and buy cryptocurrencies. “We want to bring (them) to the wider community,” Askey explained, and DLT Financial’s mission will be just that. It aims to provide the investment community a world-class index of emerging technologies.

DLT Financial also said the company will use best security practices available now to secure customer funds. Since the attack on the Hong Kong-based Bitcoin exchange Bitfinex, the company said investors are concerned about cryptocurrency investments. DLT Financial says the company’s solution will be deep cold storage. Investors won’t have to bear the risk of hacks and cryptocurrency loss, as DLT says it will keep investments offline and stored on cold storage devices.

Index Funds Are Popular In Stock Markets But Rare In The World Of Crypto

Back in September the cryptocurrency exchange Poloniex created Coinoindex, similar to the Dow Jones index. The platform allowed investments in the top 20 altcoins and portfolios, calculated through Poloniex’s exchange engine. However that service has been defunct as of late and cryptocurrency index investment platforms are rare.

DLT Financial’s service should fill the void for investors looking for a cryptocurrency index. The startup looks forward to being able to provide a service much like the Dow Jones or S&P index. As cryptocurrency-based trusts, ETFs and indexes make headway the platforms should entice traditional investors to trade, hedge, invest and speculate in these emerging technologies.      

What do you think about DLT Financial’s cryptocurrency index fund? Let us know in the comments below.

Source: Yahoo Finance

Images courtesy of Shutterstock.

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