Overview

Themelia allows investors to create customised cryptocurrency indexing strategies. Our application leads indexing methodology innovation and has been designed to deliver the flexibility and dynamism required by investors to build optimal indexing strategies in this rapidly evolving asset class.

This document details the principles underpinning the calculation of indexes on our platform.

Why indexes?

New cryptocurrencies are being created at an overwhelming pace. Researching each one individually has made constructing a portfolio based on individual asset selection almost impossible for the majority of investors.

Combining this with the fact that individual cryptocurrencies exhibit greater levels of volatility and an increased probability of complete failure when compared with traditional assets, it makes managing a concentrated portfolio more difficult.

Furthermore, given that cryptocurrencies have much shorter market cycles than traditional assets, attempts at improving returns via market timing are less likely to succeed.

In response to these challenges, cryptocurrency investors are now turning to indexing strategies to eliminate the research burden, reduce overall portfolio risk and avoid timing pressure.

Why custom indexes?

Themelia enables investors to customise an index strategy using any combination of approximately 80 filters, alongside their preferences for the rebalancing frequency and method for weighting the index. The performance of their index can then be explored across a range of time frames and easily compared to any subsequent iterations on the design. We believe this level of fine grained control will help investors optimise their return profile.