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The index, dubbed CoinShares Gold and Cryptoassets Index (CGCI), is available to users on the Bloomberg Terminal and has been created to provide investors with access to cryptos at the same time it protects them against volatility risks. Gold represents 68.25% of the index, while cryptos comprise the remaining 31.75%, equally weighted.
CoinShares says the average annual return on this new investment instrument is 18.78%. The CGCI is the first crypto-based index that has met EU regulatory standards. CoinShares executive chairman Daniel Masters said:
"Robustly researched and documented index products were the catalyst for institutional adoption of commodities in the late ‘90’s through the advent of the Goldman Sachs Commodity Index. This crypto and gold index aims to do the same, by using academic research and its benchmark regulated status to pass muster with even the most stringent investment committees."
CoinShares has conducted a study together with the Imperial College London that has concluded "a pairing of gold and crypto assets in a way that accounts for their risk contribution delivers a risk-adjusted return profile that is superior to holding gold or crypto assets alone."