ZURICH, Nov. 22, 2023 /PRNewswire/ -- Sygnum today announces a major addition to its institutional crypto sector indices product portfolio - the Sygnum Crypto Multisector Index Linked Certificate (ILC).
- The first institutional Crypto Multisector Index combines key crypto sectors into a single portfolio to conveniently enable broad, liquid access to the digital asset megatrend
- Provides exposure to multiple crypto sectors from a single entry-point, including
Layer 1 and 2 protocols, DeFi, Web3 and Gaming and Metaverse - Leverages a rules-based approach for maximum transparency
- Exploring crypto investments beyond Layer 1
The Sygnum Crypto Multisector Index Linked Certificate is designed to give professional and institutional investors broad and intelligent exposure to the digital asset megatrend and expanding decentralised ecosystem. It builds on Layer 1's foundation blockchain protocols and adds exposure to a diverse set of crypto sectors formulated via a rules-based methodology:
- Layer 1 - Foundation blockchain protocols like Bitcoin and Ethereum
- Layer 2 - Protocols that drive Layer 1 performance and scalability like Polygon and Arbitrum
- DeFi - Decentralised versions of traditional financial services like Aave and Uniswap
- Gaming and Metaverse - Blockchain-based games platforms and immersive virtual worlds like Gala and Sandbox
- Web3 - Decentralised internet and applications enabling user data control like Chainlink and COSMOS
Sygnum leveraged its crypto community involvement and regulated digital asset banking experience to launch the first institutional, rules-based crypto sector indices framework in December 2022. You can download the report and view the indexes in full here.
The emerging importance of crypto sectors
Sygnum's Asset Management team tracks and monitors more than 20,000 crypto protocols. This number is being constantly expanded by innovative new use-cases, significant levels of venture funding and top talent joining the industry. As the numbers of new use cases grow, so does the complexity of analysis and the technical understanding required of investors to make informed market entry and investment decisions.
A sector-based investment approach reduces this complexity and provides professional and institutional investors with an advanced toolset to make more informed investment decisions. The Sygnum Crypto Multisector Index Linked Certificate analyses and arranges tokens with comparable use cases and value-drivers into "sectors" that have been shown to deliver significant dispersion in terms of performance. The key advantages of a Sygnum index-based sector crypto investment strategy include:
- Relevance - comprehensive coverage of the growing ecosystem across the most established use cases
- Reduced risk - by avoiding exposure to single-token project-related elements
- Increased transparency - full visibility of underlying holdings and daily liquidity
- Simplicity - broad, rules-based digital asset megatrend exposure from a single entry-point
- Trust - leverage the technical and investment experience of a global digital asset banking group
Sygnum's Deputy Group CEO and Chief Asset Management Officer, Fabian Dori says "The true potential of digital assets will be realised through the growing number of applications, built on top of the foundational protocols like Bitcoin, that are already moving into many parts of the economy. Our Crypto Multisector Index provides access to the full spectrum of this digital asset megatrend in a rules-based, comprehensive, and trusted manner."
To build the institutional-grade solution, Sygnum partnered with Chartered Investment Partners as an established provider of structuring services for innovative investment products. Sygnum Bank AG is the key custodian and broker.
About us
Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenisation and B2B services.
In Switzerland, Sygnum holds a banking licence and has CMS and Major Payment Institution Licences in Singapore. The group is also regulated in the established global financial hubs of Abu Dhabi and Luxembourg.
We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum's mission and values are shaping this digital asset ecosystem, please visit www.sygnum.com
Media contact:
Dominic Castley, Chief Marketing Officer
dominic.castley@sygnum.com
+41 58 508 21 01
Sygnum Bank AG Uetlibergstrasse 134a 8045 Zurich Switzerland
Disclaimer: This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.
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