Author Topic: ETF-like BitAsset that's pegged to the price of the top 10 coins?  (Read 16432 times)

0 Members and 1 Guest are viewing this topic.

Offline EstefanTT

We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The weight is done like a classical weighted index (like the cac40)
To be able to comoare it to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that project but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.
« Last Edit: March 17, 2016, 12:36:55 am by EstefanTT »
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline morpheus

  • Full Member
  • ***
  • Posts: 81
    • View Profile
There have been attempts at this already but mostly the centralized UIA version.  It would be nice to have a decentralized smartcoin-style version and the infrastructure may be in place to do it now.

My strategy already is to not throw any serious money at anything unless it is consistently in the top 10.  A smartcoin that tracks a basket of the top 10 cryptos would be great.  You could call it crypto10 or something similar, like the dow30 or s&p500. 

Offline yvv

  • Hero Member
  • *****
  • Posts: 1186
    • View Profile
I think this has been discussed in the past and the issue was how to weight each coin if I'm not mistaken.

Just like S&P 500 ETF does. Take top 10 from coinmarketcap, weight their prices by market cap, sum them together. Simple. You can do even better: take all coins instead of just 10. Make mega crypto ETF index.


 
« Last Edit: March 16, 2016, 10:17:31 pm by yvv »

Offline hcf27

  • Full Member
  • ***
  • Posts: 116
    • View Profile
  • BitShares: hcf27
I would deff be interested in a BitETF smartcoin..

I think the weight of each coin should be the same at the starting point, for example:

10% Bitcoin
10% Ethereum
10% Litecoin
.... ETC

Offline Empirical1.2

  • Hero Member
  • *****
  • Posts: 1366
    • View Profile
If it was possible this would be pretty good,  DACs in particular are having a really good start to 2016, not sure many people would want to short it though.

If you want to take the island burn the boats

Offline karnal

  • Hero Member
  • *****
  • Posts: 1068
    • View Profile
I think ETFs and FOREX in general are two potential goldmines that we've been ignoring.

But their success (in my view) ties to what is being discussed in another thread right now, about having BLABLA.EUR vs EUR .. if you have all of the gateways IOUs trading against other gateways IOUs then it quickly approaches nightmare, especially for newcomers.. how much nicer it would be seeing markets like EUR:TRY or USD:CNY being actively used.

For this ETF, I think it makes a lot more sense, likewise, to trade it against USD, CNY, GBP, and so on, rather than gateways IOUs..


My fear is that we'd go through the hassle of implementing the logic in the price feed scripts, advertise this to the world, and then have hundreds of confused newcomers who want to make some good money wondering how exactly it improves the situation to have the gateway being a trusted party over what could very well possibly be years or decades...

The Smartcoin as far as I can see is undoubtedly the best instrument to trade this sort of stuff against.


tldr CRYPTO10:USD good, CRYPTO10:OPEN.USD bad


Offline karnal

  • Hero Member
  • *****
  • Posts: 1068
    • View Profile
I think it should be simple enough.. assuming there are other good alternative sources of data besides coinmarketcap.

It just needs to a) figure out what the top10 cryptos are, b) compute a price from that.

If there are good alternative sources of the top10 data, then @xeroc could probably bake something in an afternoon! :o

Offline Akado

  • Hero Member
  • *****
  • Posts: 2752
    • View Profile
  • BitShares: akado
I think this has been discussed in the past and the issue was how to weight each coin if I'm not mistaken. But it's a good idea I like it, it deserves to be a MPA
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline yvv

  • Hero Member
  • *****
  • Posts: 1186
    • View Profile
If such bitETF would existed on DEX, it would probably become #1 market cap coin :)
« Last Edit: March 16, 2016, 10:08:42 pm by yvv »

Offline karnal

  • Hero Member
  • *****
  • Posts: 1068
    • View Profile
Not in the Bitshares ecosystem AFAIK.

There used to be / maybe there still is something like this for NXT.

I'd gladly HODL this BitETF :D

Offline chamber

  • Jr. Member
  • **
  • Posts: 35
    • View Profile
Forgive me if this already available somewhere, but a search of the forum didn't turn up anything. Does anyone know if there is a BitAsset that's pegged to a market cap weighted basket of the top ten cryptocurrencies?   I think cryptocurrencies are going to explode in value, but god if I can predict which ones.  I'd like an easy way to buy / sell the market as a whole.  Does this exist already? 

ETF equivalents for other market baskets would also be helpful (S&P 500, metals, etc)