We have all witnessed the crypto boom involving Bitcoin as well as numerous altcoins. Despite recent corrections, new spikes are likely to follow. As far as it goes, Bitcoin is lingering around the 10K milestone and other cryptos get up to speed. Ranked #2 by market cap Ethereum is on its stride to $300 and Ripple, 3rd by capitalisation, goes up slowly but surely with gradual gains of 1-2%.
There is a slew of direct and implicit reasons behind the crypto rally - from increasing retail adoption and U.S.-China tensions to limited crypto liquidity caused by ‘burning’, freezing or cyberattacks.
A vivid reflection of the altcoin quotes, the XAI index builds on real-time dynamics of six currencies that make up 30% of the crypto market capitalisation: Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Monero (XMR), Litecoin (LTC) and ZCash (ZEC).
At the time of writing, the XAI Fund’s aggregate capitalisation amounts to $18,300,651,728 with the current value of 1,146.46 points. In retrospect, this six-pack of premium cryptos has grown 300+ times, which makes XAI a sustainable high performer throughout the hectic year of 2017, 2018 and up to date. The XAI Fund has spiked by 77% since the beginning of 2019.
Crypto rally or not, some underlying assets may suddenly sink in terms of price and market capitalisation. To this end, the cap-weighted XAI index mitigates risks imposed by standalone crypto assets. The whole package is re-balanced based on crypto weights to keep investors net positive at all times.
Should a crypto weight exceed 35% (as is the case with ETH), it’s automatically fixed at this level while other weights are re-calculated in proportion to their respective capitalisations. All weights summed up make 100%. The current index stance is as follows: Ethereum 35%, Ethereum Classic 7%, Litecoin 14%, Monero 8%, Ripple 34%, ZCash 2%.
Check out EXANTE’s XAI Fund to ride the crypto bulls and stay tuned for more tidings from digital exchanges.
The information in this text is provided to you for informational purposes only and should not be regarded as an offer or solicitation of an offer to buy or sell any investments or related services that may be referenced here. Please be aware that short selling strategy implies high risks.