Binance has unveiled an index built on the top 10 biggest cryptocurrencies on the market. From November, it will be possible to set up a DCA on this new product, similar to an ETF in principle.
Binance presents its Top 10 cryptocurrency index
Thanks to its new “CMC Top 10 Equal-Weighted” index, Binance now makes it possible to track the performance of the 10 most capitalized cryptocurrencies on the market.
This new index is said to be equally weighted, which means that each of the assets that make it up occupies the same importance in the overall price. In this case, each of its components weighs 10% of the price. While writing these lines, the CMC Top 10 is worth around $1,000 and includes the following cryptocurrencies:
Composition of the Binance CMC Top 10 Equal-Weighted Index
The constitution of this tracker is bound to evolve at the same time as the market, and this one requires some conditions to be able to be part of it. As a result, stablecoins backed or not by a fiat currency, as well as “same coins” such as DOGE or SHIBA are not eligible. Additionally, an asset must be listed for at least 30 days on Binance and CoinMarketCap.
Somehow, the CMC Top 10 index uses the principle of an Exchange Traded Fund (ETF), although it is different in its technical and legal construction. Its composition will be rebalanced on the last Monday of each month. In addition, its listing date begins on September 22 and its price is updated every minute.
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A simple tool for investors
As of November, Binance will allow to invest directly in this index, thanks to its “Auto-Invest” product. The latter allows you to set up an investment strategy based on Dollar Cost Averaging (DCA), directly on Binance. It is thus possible buy cryptocurrencies at scheduled intervalswith the BUSD or USDT stablecoins present in his account.
This product, coupled with this new index, can therefore constitute a relevant investment vehicle, for a person wishing diversify your portfolio in a simple and automatic way.
In addition, Binance does not plan to stop there, and has already announced that new indices will arrive from 2023, without specifying the compositions for the moment.
In addition to Auto-Invest, this index and future ones must be integrated with other exchange products, although Binance has not yet specified which ones. In this way, the platform continues its policy of offering a diversity of solutions, allowing everyone to invest in cryptocurrencies in a simple and accessible way.
👉 Also in the news – Binance launches $500 million initiative to support Bitcoin (BTC) miners
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Source: Binance
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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