Binance has unveiled an index based on the top 10 largest cryptocurrencies on the market. From November it will be possible to set up a DCA on this new product, similar in principle to an ETF.
Binance presents its Top 10 cryptocurrency index
Thanks to its new “CMC Top 10 Equal-Weighted” index, Binance now makes it possible track the performance of the 10 most capitalized cryptocurrencies on the market.
This new index is said to be equally weighted, which means 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. As you write 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 it is destined to evolve at the same time as the market, and this requires certain conditions in order to be part of it. As a result, stablecoins backed by a fiat currency or not, as well as the “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 starts on September 22 and its price is updated every minute.
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A simple tool for investors
Starting in 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 therefore possible buy cryptocurrencies at scheduled intervalswith the BUSD or USDT stablecoins in your account.
This product, combined with this new index, can therefore constitute a relevant investment vehicle for those who wish to do so diversify your portfolio easily and automatically.
Furthermore, Binance has no intention of stopping there, and has already announced that new indices will arrive from 2023, without specifying their composition 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, enabling 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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