Swiss index provider launches a new product tracking 10 DeFi tokens

Switzerland-based fund manager Compass Financial Technologies has launched an index of 10 decentralized finance (DeFi) tokens called the “Compass Crypto Basket Fundamental DeFi Index” (CCBFDEFI).

Founded in 2017, the firm provides indices and services for cryptocurrencies, commodities, multi-asset and real estate. It manages approximately $5 billion worth of investment products linked to its indices.

Launched on Feb. 22, CCBFDEFI offers institutions exposure to a set of 10 DeFi tokens individually weighted based on “liquidity, market cap and protocol revenue metrics” and on-chain data.

The maximum weight for any given token is capped at 35%, and asset groups are selected on a monthly basis. The company lists more than 20 approved tokens that can be used as index constituents every month, such as UniSwap (UNI), Compound (COMP), Aave (AAVE) and SushiSwap (SUSHI).

Compass Financial Technologies CEO Guillaume Le Fur emphasized that institutional interest in cryptocurrencies is “growing significantly” as companies seek ways to invest in the industry in a compliant manner:

“The inclusion of fundamental metrics in index creation offers investors the possibility to allocate the most efficient DeFi tokens based on rational economic indicators.”

CCBFDEFI is published on the company's website along with Bloomberg and Refinitiv and complies with the European Union Baseline Regulation (EU BMR). This product is also available under a license agreement from Compass Financial Technologies.

Compass Financial Technologies also partnered with top crypto fund manager CoinShares in late January to offer its reference price index as part of CoinShares physical exchange-traded product (ETP), which charges zero management fees and offers staking rewards.

Last April, the firm launched a suite of EU BMR-compliant crypto indices covering everything from reference prices to smart risk controls and volatility targets.