Onramp advisors can now access exclusive indices, bringing together Global X’s industry-leading research and CoinDesk Indices’ (“CDI”) powerful Trend Indicators.
The benefits of digital asset indices
Index-based solutions are invaluable tools for financial advisors in the rapidly evolving world of digital assets. They offer diversification, risk management, simplified decision-making, performance tracking, education, customization, and enhanced liquidity. By incorporating these benefits into their advisory services, financial professionals can help clients navigate the digital asset market more effectively while managing risks and achieving their financial goals.
How the CoinDesk Indices Trend Indicator works
The CoinDesk Bitcoin & Ether Trend Indicators (“BTI/ETI”) help navigate the digital asset market cycles by providing a daily signal that conveys the presence, direction, and strength of the current price trend of bitcoin and ether. The simple but powerful idea behind trend strategies is that trend strategies may provide better risk-adjusted performance by capturing systematic trends based on market sentiment. Trend, also referred to as time series momentum, is well documented in academic literature and practiced in quantitative finance and in the CTA community in long-only and long/short implementations.
Powering Global X trend strategies
The insights provided by CoinDesk Indices’ Trend Indicator technology can now be harnessed through two new indices designed in partnership with Global X. These two new Global X SMA strategies leverage the indices developed from CDI’s intuitive and agile Bitcoin (BTC) and Ether (ETH) Trend Indicators. Both strategies are designed to capture systematic trends, minimize downside risk, and provide dynamic exposure to bitcoin and ether.
Global X Bitcoin Trend SMA – The Global X Bitcoin Trend SMA (“Strategy”) seeks to track the performance results of the CoinDesk Bitcoin Trend Indicator Series 1 Index (“Index”). The Index systematically and dynamically allocates between bitcoin and cash. The Index allocation between these two exposures is based on the value of the Bitcoin Trend Indicator (“BTI”). The BTI is a daily signal that conveys the presence, direction, and strength of the current price trend of bitcoin. The Strategy maintains greater exposure to bitcoin when the price trend is positive and reduces risk when the trend reverses by allocating a greater proportion to cash.
Global X Ether Trend SMA – The Global X Ether Trend SMA (“Strategy”) seeks to track the performance results of the CoinDesk Ether Trend Indicator Series 1 Index (“Index”). The Index systematically and dynamically allocates between ether and cash. The Index allocation between these two exposures is based on the value of the Ether Trend Indicator (“ETI”). The ETI is a daily signal that conveys the presence, direction, and strength of the current price trend of ether. The Strategy maintains greater exposure to ether when the price trend is positive and reduces risk when the trend reverses by allocating a greater proportion to cash.
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Disclaimer: This is not investment advice. The content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity.
Carefully consider the investment objectives, risk factors, and charges and expenses of any Global X investment product before investing. Investing involves risk, including the possible
loss of principal. Digital assets are high-risk investments and may not be suitable for all investors. They may be highly volatile. Please consult your financial or tax advisor for more
information.
CoinDesk Indices, Inc. (“CDI”) is not affiliated with Global X Digital Assets, LLC and does not approve, endorse, review, or recommend Global X Bitcoin Trend SMA and Global X Ether Trend SMA. CDI does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Data and shall not be liable in any way to the Global X Digital Assets, LLC, investors in or holders of Global X Bitcoin Trend SMA and Global X Ether Trend SMA or other third parties in respect of the use or accuracy of the Data or any data included therein.