update 12 October 2021

Top 5 Crypto Index Funds You Should Consider in 2021

The crypto market is back on track as we saw new all-time highs in the past weeks. Unlike in 2017, when speculative investors were the driving force behind the bull run, there is a strong push from institutional investment firms fueling this go around. It appears that Bitcoin and the entire crypto market have reached a tipping point in terms of adoption. For this reason, now is one of the best times to invest in the market. 

Why Index Funds are a Smart Strategy

Index funds have been around for a long time in the traditional financial sector. These portfolios consist of stocks or bonds designed to mimic a financial market index’s composition and performance. Crypto index funds include blockchain projects and networks. Consequently, these funds allow you to track the crypto markets’ performance as a whole by holding a single crypto asset. 

Crypto Index Fund Benefits

Investing in a crypto index fund makes sense when you look at the benefits gained. For one, index funds have lower expenses and fees than actively managed funds. Depending on where you live, there are also tax advantages because they generate less taxable income

The highly diversified nature of index funds also reduces risk. History has proven that these financial instruments generally outperform other types of mutual funds in the market. As such, their addition to the cryptomarket was welcomed by investors. However, it’s vital to understand that every index fund is different. Here are the top 5 crypto index funds to consider adding to your portfolio in 2021.


Shrimpy is the most advanced index fund builder in the cryptocurrency market at this time. This powerful cryptocurrency indexing tool features a host of features to push ROIs to new heights. For example, Shrimpy users enjoy full portfolio automation. You can set your fund requirements, and the network will continually adjust your holding to meet your desires.

There’s also the rebalancing feature that streamlines the entire index management process. You can even monitor multiple indexes through the portfolio management application via a complete set of API endpoints that connect to every major exchange. In this way, the platform is incredibly flexible.

Another excellent feature exclusive to Shrimpy is Crypto Social Trading. Keenly, this system allows new users to duplicate another trader’s strategy automatically. New users can follow their favorite traders and learn from their actions. Best of all, they will also profit as they become better traders. 

Amun Crypto Basket Index (HODL5)

The Amun Crypto Basket Index HODL5 is another fund that has a strong following in the market. This index fund features the top 5 and most liquid crypto assets in the market. To improve ROIs, the platform introduces a volatility management methodology. This system weighs assets based on the 2050 market cap and other vital factors.

Investors enjoy additional functionalities and benefits when they invest in HODL5. For example, there is a higher level of privacy since the fund is based in Switzerland. However, this index doesn’t include any privacy coins. Speaking on features, users gain access to multiple tracking indexes, and your portfolio automatically re-balancing monthly. HODL5 is a wise choice for those looking for a safer fund that doesn’t require a lot of selection on your end. 


The Crypto20 index fund entered the market in 2017. The fund was praised as the first tokenized crypto-only index fund. Since that time, Crypto20 has continued to gain in popularity due to a combination of factors. The fund features no broker fees, no exit fees, no minimum investment, and full control over your assets.

You gain access to a variety of options to increase your returns. For example, you can customize your portfolio from thousands of cryptocurrencies to suit your investment goals. Notably, this index fund rebalances weekly and caps each asset at 10%. This cap helps to ensure that your portfolio remains safe through diversification.  No one asset dropping can affect its value by more than 10%.


Bitwise is another well-known index fund. It’s generally credited as the first cryptocurrency index fund to enter the market. This fund is only available to US citizens and accredited investors at this time. The Hold10 index exclusively features only the top 10 cryptocurrencies weighted by inflation-adjusted market cap.

Bitwise leverages its size to achieve best-in-class trading execution. The platform creates a scenario in which multiple market-makers compete for buying and selling the firm’s assets. In the end, users receive better pricing alongside world-class security. Bitwise stores all investments in cold storage with an institutional third-party. In this way, Bitwise can serve the needs of enterprise-level investors.


The CIX100 index fund combines two of the fastest-growing technologies in the market, AI (artificial intelligence) and blockchain. This index fund consists of the top 100 blockchain projects chosen by an AI-powered neural network algorithm. Impressively, the AI protocol considers a wide variety of factors to come to its final decision. 

Developers claim the system analyzes more than 2000 coins. These coins are reviewed and ranked in 200 factors. This portfolio index is calculated every second in real-time, and it rebalances itself continuously as the cryptocurrency market changes. The fund integrates with various top exchanges via secure API, including OKEX, Binance, Huobi, Bitfinex, Kraken, and many more. The flexibility and interoperability of this index fund make it a top contender on any list.

Top 5 Crypto Index Funds to Consider in 2021

price change

Now that you have a better understanding of the top 5 index funds to consider in 2021, you’re prepared to expand your investment strategy. The key to success is DYOR and always stick with reputable platforms, funds, and exchanges to avoid unnecessary losses. Investing in crypto index funds can be hugely profitable if done the right way. Any of these funds will provide you with a great start to your index portfolio.

More posts

Which is the Most Crypto-Friendly Country in Europe?

When cryptocurrencies made their first appearance in the financial world, many people were skeptical about them. Governments mainly felt threatened because the digital currencies dispelled the need for central banks. A little over a decade later, cryptocurrency mainstream adoption has made strides. However, many jurisdictions remain hostile toward digital currencies.  There's no denying that cryptocurrencies present several advantages, which is why many enthusiasts and investors are jumping on board. However, for mainstream crypto adoption to be realized globally, jurisdictions must…

Crypto Signals to Stop You from Succumbing to FOMO Woes

In the case of cryptocurrency, FOMO is popular due to enormous and rapid gains. However, as more people realize these great opportunities, they are afraid that they will miss them. When you think that you can win a particular cryptocurrency, you begin to buy it in huge numbers. As numerous investors and traders believe that blockchain and crypto are in the early stages and have excellent development potential, FOMO appears to be more than just a driving force in the…

Understanding Ethereum’s Solidity Programming Language

Ethereum is a cryptocurrency capable of storing value and making payments. However, that's not all. It is also a fully-fledged platform for creating smart contracts, and this is where Solidity comes in. Solidity is a high-level language for implementing smart contracts. It is influenced by C++, Python, and JavaScript and is designed to target the Ethereum Virtual Machine (EVM). This article will uncover all about the Solidity programming language and how it works and is used on the Ethereum network.…

Hedera – A Comprehensive Guide to a Revolutionary Consensus System

Blockchain is the digital environment supporting cryptocurrencies and decentralized app (DApps). You may know it as one of the greatest innovations of the 21st century. However, this remarkable invention has its shortcomings. For instance, it is difficult to scale and consumes too much energy, making it bad for the environment. Fortunately, some projects aim to solve these issues. One of them, Hedera, has come up with a potentially better alternative to blockchain: Hashgraph consensus. Consequently, Hedera used it to open…

How to Start Investing in Cryptocurrency Easily in 2021

Investing in cryptocurrency may seem tricky at first. However, once you break it down into simple steps, you should find winning strategies easier. In 2021, millions of people trade Bitcoin every day with various degrees of success. The market provides investors of all levels with numerous opportunities. So, if you are looking to dip your feet into the crypto sphere, why not start now? In this article, we discuss the easiest ways to make your first cryptocurrency investment in 2021.…

The Metaverse and Its Dependency on Blockchain & Cryptocurrencies

The metaverse was once nothing more than a futuristic concept. However, it is now taking shape, and cryptocurrency and blockchain technologies have an integral role in its development. “The metaverse will be the gateway to most digital experiences, a key component of all physical ones, and the next great labor platform,” says Matthew Ball, a renowned venture capitalist. This statement defines the metaverse quite well in a nutshell. However, we still have a lot more to learn about the next…

How the New Shrimpy DEX Trading Tool Works

In 2018, Shrimpy, a crypto-focused automated portfolio management platform, came into the financial world. Its primary goal is to provide tools for automating trading strategies, rebalancing portfolios, and copy trading to new and expert traders in the crypto space. Furthermore, its mission is to make investing in crypto easier and faster for those with no experience in the decentralized world. With an extensive list of features, users are introduced to a brand new system of trading cryptocurrencies that saves time,…

The Best Countries for Crypto Mining Now that China is Out

Cryptocurrency mining remains profitable. However, it has come under significant scrutiny in the past few months. Things took a turn for the worse when the Chinese government hit mining. Continuing its hardline stance on the crypto industry, Beijing cracked down on mining this year. A Long Way Here The nuances between China and mining are pretty interesting. For years, Beijing has made it clear that cryptocurrencies aren’t welcome in the country. It released a circular in 2017 confirming that crypto…

How to Use Ethereum Smart Contracts

Smart contracts might seem like complex cryptocurrency jargon to contemplate, but in reality, it's not. An Ethereum smart contract is an automated agreement between two parties written in code. Smart contracts have continued to bloom in the crypto space, and more is yet to come. One analysis shows that the wise contract market size might reach USD 345.4 million by 2021 at a CAGR of 18.1%. Ethereum smart contracts have had a notable impact in revolutionizing the crypto space and…

How to Tell Which Crypto Will Surge By a Higher Percentage During a Bull Run

Cryptocurrencies have rallied over the past year like never before in history. Most cryptos went as far as achieving all-time highs. Even with high volatility, investors do not seem to back down at any moment. As a crypto investor, it would help if you knew how to predict surges during a bull run to be at par with the rest of the community. One might think that predicting the movement of crypto prices is complicated. However, with a few pointers,…