Cryptocurrencies
Indexing Is Coming to Crypto Funds Via Decentralized Exchanges
- Main attraction lies in turning the funds into tradable tokens
- DAO hacks remain a common threat; legal protection is limited
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Index funds have long been pitched as a low-risk and inexpensive way to invest. Now they’re coming to the rollicking world of cryptocurrencies, but with plenty of caveats as well as expectations for eye-popping returns.
In a nod to the decentralized aspirations of crypto, the handful of funds offered -- which go by names such as Index Coop, Indexed Finance, PieDAO, and BasketDAO -- are run by DAOs, the decentralized autonomous organizations that are governed by software programs and user communities.