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Crypto 10 Index

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@JamesIG,

I have noticed that you launched a new trading derivative last week called 'Crypto 10 Index'

Now IG currently offers the following 8 Cryptocurrencies to trade:

  1. Bitcoin
  2. Ether
  3. Ripple
  4. Bitcoin Cash
  5. Litecoin
  6. NEO
  7. Stellar
  8. EOS

So IG itself does not currently offer 10 different Cryptocurrencies for its clients to trade. So what I would like to know is which 10 Cryptocurrencies are included in the 'Crypto 10 Index'?

IG's website states the following:

Our Crypto 10 index gives you exposure to the ten largest coins with a single trade.

So I assume IG are offer the 10 largest Cryptocurrencies by market cap within this product? Is that a correct assumption I have made?

  • If so then what is the allocation for each Crypto?
  • Are they equal?
  • What is the exposure per Crypto?

I think it is very important for IG to offer this basic information so that any client of IG knows exactly which Cryptocurrencies it has exposure to when it is trading the 'Crypto 10 Index'

Now as someone who has been trading Cryptocurrencies with IG and other providers for a few years now if I cannot clearly understand the product then I do wonder how new and inexperienced traders are going to be able to. 

  • Thought provoking 1

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Somebody has just tagged my post above as 'Thought Provoking'.

There are only a few people active on the IG Community at this moment in time around 10:00 am UK time on Sunday. However, I will try my best not to make any assumptions on who it could have been. 

It would have been nice for that person to have stated what it was that was so 'Thought Provoking'. I mean am I to take it as a 'Positive' or a 'Negative'?

If they know the answer and it is obvious to them then they should surely share it with the IG Community? 

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36 minutes ago, TrendFollower said:

So I assume IG are offer the 10 largest Cryptocurrencies by market cap within this product? Is that a correct assumption I have made?

Not me who thought it thought provoking by the way but here are the 10 in the FAQ dropdown.

image.png.b5b14426ad3ba72c2ed7e8fe162ad334.png

image.png.fdb74bab042f0c06dbc28b65e0a40d9d.png

 

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  • Thanks 1

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Thanks @Caseynotes

I just went back and had a look and I cannot believe that it was there. I looked several times so either I have totally missed it (which is more likely) or IG happen to add it near a similar time to my post. It is most probable that I have missed it. 

Thanks. 👍 (By the way that was me who just gave you a thanks). 

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@JamesIG & @Caseynotes,

The selected and weighted by market cap needs more clarification. So I understand that the 10 Crypto's may change every quarter depending on their market caps. That is fine.

What I would like more clarification on is whether Bitcoin gets a higher allocation in the Index than say Dash to the size of the market cap and Ether gets a higher allocation than Bitcoin SV due to its higher market cap. I presume this is what it means when it states 'Selected and Weighted by Market Cap'? 

If this is the case then should these allocations not be released per quarter for all to see? So one knows exactly how much exposure they have to Monero and Cardano, etc?

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Posted (edited)

Apologies - I pressed wrong button - meant to say thanks (as you say it very early in UK and last night G+T still having effect!)

I have also been looking at Crypto 10 Index but spread too wide for me in this period of vol.

Edited by FFS_Daytrader

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Posted (edited)
7 minutes ago, FFS_Daytrader said:

Apologies - I pressed wrong button - meant to say thanks (as you say it very early in UK and last night G+T still having effect!)

I have also been looking at Crypto 10 Index but spread too wide for me in this period of vol.

Yes, I was looking at this yesterday and was sure the spread was lower but is currently the same as BTC, see list below, should only be 25

image.thumb.png.4393925ca98668a5d4f3d5d2c493f383.png

 

Edited by Caseynotes

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On 30/06/2019 at 10:31, TrendFollower said:

The selected and weighted by market cap needs more clarification. So I understand that the 10 Crypto's may change every quarter depending on their market caps.

You can see more information here, including constituent makeup.

 

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Thanks @JamesIG,

I must have missed this section. Apologies. 

That is the information I was looking for. So heavily weighted towards Bitcoin and Ether. 

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Will it survive the impending ban on crypto trading for retail clients?

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If there is a ban on retail clients then it could encourage them to physically acquire crypto’s and open a crypto wallet so it may have unintended consequences.

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13 hours ago, TrendFollower said:

If there is a ban on retail clients then it could encourage them to physically acquire crypto’s and open a crypto wallet so it may have unintended consequences.

the FCA have proved enough times that they're short sighted in their logic. It's a self strengthening body who need to create new regulation purely to maintain their own self worth. The market will never be regulated enough - they will always try and make something MORE regulated, even if it doesn't need it.

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@cryptotrader,

I can see your point but on a serious note Cryptocurrencies do need strong regulation as it is one of the highest risk asset classes. It is also the least understood and appreciated. There is a lot of rubbish presented via online media channels and it influences the thinking of a lot of people both false positively and false negatively. 

FCA do make things difficult for themselves as the people who really understand this niche market most probably do not work for the FCA. So one hopes they take advice from people more knowledgable and experienced in this area to implement effective regulation. 

 

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Posted (edited)

this isn't regulation

this is a blanket ban

EDIT: it also annoys me that 'professional' can simply mean you have 500,000 quid. its retarded.

Edited by cryptotrader

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@cryptotrader,

Yes you are right. Why do they not ban retail clients to be able to trade micro and nano caps listed on the AIM market as 90% of them are just as high risk. In fact one could argue that you would have made more money trading or investing in the largest cap Crypto’s in the same time period as the some of the garbage listed on AIM.

I agree with you. It is stupid that £500,000 of investable / tradable capital gives you professional status. What if someone who has never invested or traded wins the lottery and then decides to invest or trade in Crypto? How does this mean they are professional? 

I personally think it should be evidence based on profits and returns generated over the past three to five years.  

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