In 2017, we added XAI Fund to the EXANTE trading platform. XAI is the first index that reflects the dynamics of the most popular alternative cryptocurrencies. XAI Fund is secured by the real cryptocurrencies included in the index. XAI Fund allows you to rebalance an investment portfolio for diversity by purchasing a single instrument.
XAI is a capitalization-weighted index based on six coins: Ethereum, Ethereum Classic, Ripple, Monero, Litecoin, and Zcash. We intentionally did not include Bitcoin into the list aiming to make XAI Fund more diversified.
Here is the formula used to calculate XAI index:
The weight of each cryptocurrency in XAI is defined on a monthly basis by the following formula:
If the weight of any of the cryptocurrencies changes by more than 10%, the weights get recalculated using the weighted average price of the previous trading hour.
If the weight of one of the cryptocurrencies exceeds 35%, it is automatically fixed at the level of 35%. All the other weights get recalculated proportionally to their capitalizations, so that the sum of the weights is equal to 100%. The recalculation of the weights is performed every Tuesday.
When you buy a fund share EXANTE buys cryptocurrencies included in the XAI index to the XAI Fund's collateral pool. So each fund share is fully provided with real cryptocurrencies.
We store the fund shares that you buy on a brokerage account. That is the way to safe keeping as opposed to vulnerable wallet storing. We charge an annual safe keeping fee of 3.5% on a daily basic. Cryptofunds allow for easy accounting without taxation issues. It is a legal opportunity for corporate clients to invest in the cryptocurrency market.
The commission for trading XAI Fund is 0.5% per trade with no minimal fee. Lot size is 1/1000 of the index fund share in USD.
To trade XAI Fund shares open the trading platform, then go to the Instruments and expand the Crypto section, or search by the fund ticker, XAI: Altcoin Index.