Apex20 VTF
An overall-crypto market VTF (our version of "S&P500") consisting of top 20 cryptocurrencies
Fund Overview
The APEX20 Vault-Traded Fund (VTF) is a diversified, passively managed index fund designed to track the performance of the top 20 cryptocurrencies by market capitalization. It provides investors with a simple and efficient way to gain exposure to the broader crypto market while minimizing the complexities of portfolio construction and maintenance.
Fund Type: Crypto-native passive index fund
Investment Objective: Track the market performance of the top 20 cryptocurrencies
Launch Date: 11/25/2024
Platform: Paradex and HyperLiquid
Rebalancing Frequency: Weekly
Management Fee: 0%
Profit Sharing: 1% (Paradex), 10% (Hyperliquid)
Investment Objective and Strategy
The APEX20 VTF aims to deliver broad market exposure by investing in the 20 largest cryptocurrencies, weighted by market capitalization. The fund seeks to:
Reflect the overall health and performance of the crypto market.
Offer a diversified investment option for both long-term holders and active traders.
Provide an alternative benchmark for assessing crypto market returns.
To achieve this, the fund systematically rebalances its holdings on a weekly basis, ensuring alignment with market movements and sector dynamics.
Key Benefits
Diversification: Gain exposure to a wide range of cryptocurrencies without managing multiple positions.
Cost Efficiency: Minimized fees and slippage through optimized on-chain mechanisms.
Transparency: Fully auditable on-chain activity for peace of mind.
Flexibility: Accessible for both long-term holding and tactical short-term strategies.
Token Selection & Weights Calculation
The target weighing for the top 20 cryptocurrencies are calculated based on listed markets caps on CoinMarketCap on Fridays at 12:00pm EST. The fund excludes all stable-coins. There will be a 2.5% flooring applied to the weights to dilute the very top holdings and ensure each token will have meaningful contribution to the fund makeup. In the case that a token is not listed on a given exchange, the token will be replaced either by dilution or substitution. The fund may also reserve up to 5% of the fund allocation as the native stablecoin in anticipation for potential withdraws or redemptions.
Risks
Investing in the APEX20 VTF involves risks, including but not limited to:
Market Risk: The value of the underlying assets can be volatile and may decline significantly.
Liquidity Risk: Some assets in the index may experience low liquidity, leading to challenges during rebalancing.
Smart Contract Risk: The fund is hosted on blockchain platforms and may be exposed to vulnerabilities in smart contracts.
Regulatory Risk: Changes in laws or regulations governing digital assets could impact the fund's performance.
Investors should carefully consider their risk tolerance and investment objectives before allocating capital to the APEX20 VTF.
How to Invest
Investors can access the APEX20 VTF on the following platforms:
Deposits and withdrawals can be made directly through the platform interfaces.
This prospectus is not an offer to sell or solicitation to buy securities. All investments involve risk, and past performance is not indicative of future results. Please review all risks and disclosures carefully before investing.
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