BitGo Makes Deal with Index Coop in Bet Institutions Want 'Thematic' DeFi Tokens
BitGo has done a deal with Index Coop in a bid to offer institutional investors more offerings in DeFi.
By: Samuel Haig •DeFi News
BitGo, a crypto platform that caters to institutional investors, has launched support for Index Coop’s “thematic” tokens.
The move signals growing demand from institutions for products that allow them to speculate on nascent segments breaking through in the DeFi and Web3 sectors, including Metaverse and data economy projects. Index’s thematic tokens offer diversified exposure targeting emerging niches in crypto.
The integration will allow BitGo’s institutional clients, including venture capital firms Pantera and Base58, and crypto exchange Bitstamp, to access Index Coop’s Metaverse Index (MVI), Data Economy Index (DATA), and Bankless BED Index (BED) tokens.
Thematic Index Tokens
“These crypto index funds will provide BitGo’s institutional clients with simple, one-token access to emerging crypto themes,” said Index Coop.
Index Coop describes itself as “a collective aimed at creating and maintaining the best crypto indices on the market.” In addition to its thematic index tokens, the group also offers leveraged tokens that track ETH and BTC.
BitGo first partnered with Index Coop in July 2021, integrating support for its flagship DeFi Pulse Index (DPI) token that same month.
Index Coop’s thematic tokens offer broad exposure to a variety of leading assets within a given digital asset segment, with their respective index composition updated monthly according to market cap.
DPI was launched in September 2020, comprising a trailblazing decentralized finance index token tracking the top assets according to data aggregator DeFi Pulse. Index Coop describes the token as an easy way to access diversified exposure to the DeFi sector and an automated position management strategy.
Assets contained in DPI’s index must correspond to an Ethereum-based DeFi protocol, and must not be securities, wrapped tokens, synthetic assets, tokenized derivatives, or tokens that are tied to physical assets or represent claims on other tokens. No single token can comprise more than 25% of its underlying assets.
DPI is trading at $264 after posting a five-month low in mid-December and is up 341% since early November 2020. However, the token is down 58% from its May 2021 all-time high.
DPI Index Composition
The MVI index features assets contained in at least one of five categories tracked by market data provider CoinGecko: Non Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality, and Music.
Tokens contained in the index must have a market capitalization exceeding $50M and have both an operational and token data history exceeding three months.
The token is up 102% since launching in April 2021, recently retracing 43% from its November all-time high of $349. MVI last changed hands for $199.4.
MVI Index Composition
The DATA token seeks to track web3 protocols that are “disrupting the data monopolies built in Big Tech over the past 20 years.”
Assets backing DATA must have a market cap of at least $100M, three years and operational and token data history, and demonstrable organic network activity. DATA last traded for $86.9 and is down 11% since launching in September and 34% from its November high of $131.5
DATA Index Composition
The Bankless BED Index is composed of equally-weighted BTC, ETH, and DPI holdings. The token is up 38% since launching in July but down 33% since November.