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As regular readers of this newsletter might know, the 108Token
is an index that tracks the top-15 crypto assets.
One the eve of the eighth monthly rebalancing of our 108 token portfolio, we share with our readers insights on how the index composition has changed since our launch and how the token has performed relative to top cryptocurrencies and indices. To recap, 108Token is an index token that tracks the performance of the top 15 cryptocurrencies on a supply-adjusted market cap basis (Year 2050 Supply), with a cap weight of 20% (the maximum portfolio weight for any index constituent).
Indices, and ETFs around indices, are a great way to get broad-based passive exposure, as Vanguard proved. A significant part of capital into the crypto asset class will eventually come in through index-based products, especially once an ETF is approved in the US.
Coming back to the 108 token, Figure 1 shows how NAV has changed over the past 8 months since our first deployment in September 2018. There was the early high of a 1.4x in NAV, partly due to the temporary XRP rally. In the recesses of the crypto winter, with white walkers almost tearing down the wall, it was well below par, but still better than holding plain vanilla BTC or ETH, and now it is back up to 0.85, and inching steadily upwards (along with Arya’s Needle) as the crypto winter shows distinct signs of thawing. (Had to stick in the mandatory GOT references in there!)