Introduction
Investing in cryptocurrencies has never been easier with the Crypto Basket ETP. This index-based financial product allows you to passively invest in the top 20 cryptocurrencies without the need for technical expertise or a blockchain wallet.
Key Benefits:
- ETF-like Simplicity: Trade seamlessly via your existing brokerage account.
- Diversification: Gain exposure to ~85% of the crypto market capitalization.
- Regulated Security: Fully backed by physical crypto assets, safeguarded by regulated custodians.
Why Choose a Crypto Basket ETP?
Advantages Over Direct Crypto Investments
- Regulated Financial Product: Complies with EU financial standards.
- Broad Market Exposure: Tracks the MSCI Global Digital Assets Select 20 Index, covering top crypto assets like Bitcoin and Ethereum.
- Automatic Rebalancing: Quarterly adjustments optimize portfolio weightings.
- No Wallet Required: Eliminates the risks of self-custody.
- Tax Efficiency: In Germany, gains are tax-free after a 1-year holding period.
Index Features
| Feature | Description |
|-----------------------|-----------------------------------------------------------------------------|
| Rebalancing | Quarterly adjustments to capture market trends. |
| Quality Filter | Excludes meme coins (e.g., Shiba Inu) and privacy coins (e.g., Monero). |
| Capping | No single asset exceeds 30% weight (e.g., Bitcoin dominance controlled). |
How to Invest
Step-by-Step Trading Guide
- Open your brokerage account.
- Enter the ETP’s ISIN/WKN in the order panel.
- Select a trading platform (e.g., Xetra).
- Specify the investment amount and execute the order.
Popular Brokers Offering the ETP
👉 Explore trusted brokers for Crypto ETPs
FAQs
1. What is a Crypto Basket?
A basket of multiple cryptocurrencies bundled into a single tradable asset (ETP), providing diversified exposure without managing individual coins.
2. How does the index ensure diversification?
The MSCI index includes 20 large-cap cryptos (~85% of the market) and excludes volatile assets like stablecoins and meme coins.
3. Is this product available for U.S. investors?
No. The ETP is designed for European investors under EU regulations.
4. How often is the index rebalanced?
Quarterly (March, June, September, December).
5. What are the tax implications?
In Germany, no capital gains tax applies after a 1-year holding period.
Final Notes
The Crypto Basket ETP bridges traditional finance and crypto, offering a passive, diversified, and secure investment avenue.
👉 Learn more about crypto index investing
Disclaimer: Cryptocurrency investments are volatile and risky. Consult a financial advisor before investing.
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