For a good chunk of Crypto OGs (look it up, it is a term in crypto land), especially the bleeding-edge puritanical libertarians to whom fiat implosion and USD irrelevance is merely but an inevitable formality, crypto indices are anathema to this crowd. There is a mathematical chance that they might be right, and this time, it could truly be different. But given the direction that crypto is evolving in, as an addition to the existing asset classes, nicely complementing them rather than supplementing them, we think that the mechanics that saw index investing become preeminent in traditional equity markets will play out here as well. (Implementation and security issues around crypto indices that are mentioned as a response to this are a necessary but tangential discussion, that does not detract from the usefulness of passive indices).
The key thing to note here is the performance of the index vs the performance of BTC or ETH, the two gateway currencies. This might not always be the case and there will definitely be time periods when BTC alone might outperform at the expense of the alts, in which case the 108Token index will underperform BTC. But the point with the index is, in the long run, you are better off being passive. Passive indices make the most sense as the market matures and information asymmetry diminishes. Bitcoin and the leading cryptos are no longer abstruse, geeky concepts that require you to jump through hoops. Anyone, almost anywhere can access the mainstream cryptocurrencies. Irrespective of whether you are a first-time investor, or as a portfolio manager looking to add crypto to your portfolio for diversification, you should be considering a passive index strategy. In addition to the 108 Token, there are a few others that are coming up that you can and should consider, especially if crypto is not something that you live, eat, breathe. Needless to say, you know what our suggestion is, gun-to-head ;).
Oh btw, in a recent survey of around 10000 readers by a popular tech newsletter, when asked to choose between where they would allocate money, 69% went for Cannabis stock, with the remaining 31% choosing crypto. Pot, go figure!