Saxo Bank Introduces Crypto and Blockchain Theme Basket
Saxo Bank, a leading multi-asset trading and investment provider, announced that it is introducing a new theme basket focusing on crypto and blockchain companies. This basket offers exposure to investors who want to trade cryptocurrencies but do not want to own physical cryptocurrencies.
Saxo explains that, with the listing of Coinbase the size a matureness of the crypto industry has finally reached a level where Saxo Bank can introduce a crypto and blockchain theme basket. The basket is their smallest to date consisting of only 18 companies across segments such as trading exchange, crypto services, crypto mining, investment holdings, blockchain applications, and crypto mining equipment.
The basket does not have a five-year history due to lack of quality names going back five years. Total return has not surprisingly been strong the past year and year-to-date due to the rally in crypto prices, but the basket has recently been a bit under pressure. Since this is an emerging industry and something that is a bit difficult for many investors to grasp, Saxo will soon have a piece out by their crypto analyst going through the different companies in this basket.
The three main risk sources for this basket are new regulation which could severely impact further adoption of cryptocurrencies, valuations across crypto related companies are quite aggressive which makes these stocks more sensitive to changes in sentiment, and finally the Bitcoin price itself is a key risk. The average correlation to Bitcoin prices is around 0.45 which means that the returns of this basket will fluctuate with Bitcoin prices.
Fazzaco earlier reported that Saxo Bank has published its client trading volumes in March 2021, showing an increase across all metrics.
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