- CoinMetrics acquired Bletchley Indexes and it could work on Smart-Beta Indexing
- The crypto market could provide good opportunities for users
The crypto analytics company Coin Metrics decided to acquire Bletchley Indexes and is interested in working on smart-beta indexing for Bitcoin (BTC) markets. Smart-beta index funds work by mixing passive and active strategies and more crypto fund providers are already working with it. The information was released by TheBlock a few hours ago.
CoinMetrics Could Soon Work With Smart-Beta
Passive investing has been implemented by Warren Buffett and other investors such as Jack Bogle, trying to get broad exposure of the market. Meanwhile, active investing works by searching individual stocks in order to achieve an outsized return.
During the last few years, the markets have moved from active to passive and hedge funds have experienced $15 billion of outflows just during the first quarter of 2019. Things would be different for investors if they use smart-beta strategies that could attract the crypto market. Virtual currencies tend to be very volatile and they could provide good returns in a short period of time. With Smart-beta exposure, it is also possible to help weak players as well.
The CEO of Blockforce Eric Evans commented about it:
“In new emerging, inefficient asset classes, passive is not usually that effective, and active can work.”
Coin Metrics will be rebranding Bletchley Indexes as Coin metrics Bletchley indexes (CMBI). The intention is not to only change the name but also use Coin Metrics’ on-chain and market data to expand its number of indexes past Bletchley’s original 13.
As reported by The Block, there are other hedge funds that are analyzing the possibility to offer smart-beta exposure. Hedge fund managers believe that it is possible to do that in crypto in a profitable way.
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