This partnership allows RIAs to invest in this asset class without changing their regular course of business, enabling everyone to drive net new client acquisition and benefit from the historic returns displayed over the past 15 years in the most secure and compliant environment in crypto.
NEW YORK (PRWEB) February 07, 2023
HeightZero, a cutting-edge turnkey digital asset management platform (TDAMP), today announced the availability of the CoinDesk Large Cap Select Index (DLCS) within their offering. The DLCS index will allow investment advisors, an industry with over $128T in managed assets (1), to easily provide their clients with direct exposure to a wide array of crypto assets in a secure, scalable, and transparent framework.
Ninety percent of advisors are fielding questions about digital assets, but only 15% are actually allocating to crypto in client accounts, according to a recent industry survey by VettaFi and Bitwise (2). Advisors cited the failure of centralized institutions like FTX, custody concerns and lack of easily accessible investment vehicles as key reasons for either not increasing investments in crypto assets or making any allocation at all. While investor interest in digital assets remains bullish, a lack of reliable, easy-to-use investment solutions persists, which is why HeightZero has created an all-in-one solution to simplify access.
"We continue to see institutional demand for safe, diversified exposure to the crypto ecosystem, even amidst the recent market downturns," said AJ Nary, Co-Founder of HeightZero. "These crypto indices can provide financial advisors access to a thoughtfully designed, diversified portfolio of assets, rather than having to pick and choose specific coins and tokens. And with the assets being held at a licensed custodian, there is peace of mind that their clients funds are safe."
To bring this solution to market, HeightZero has partnered with CoinDesk Indices, the leading provider of digital asset indices (3) and creator of the DLCS index, and BitGo, a pioneer in delivering institutional grade custody solutions for the digital asset economy.
The CoinDesk Large Cap Select Index is designed to measure the market capitalization weighted performance of some of the largest and most liquid digital assets that meet predefined trading and custody requirements. DLCS is based on the Digital Asset Classification Standard (DACS). Constituents must be included in DACS to be eligible for the Index. As of January 4, 2023, DLCS consisted of the following assets: Cardano (ADA), Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC) and Solana (SOL).
“DLCS offers a simple exposure into crypto beyond bitcoin with confidence that the altcoins meet our quality standards intended for investability. For example, the index rules initially eliminated FTT since it wasn't priced by at least two eligible exchanges,” said Jodie Gunzberg, CFA, Managing Director, CoinDesk Indices. “We are thrilled about the partnership with HeightZero to enable access to the investable, large cap digital asset market.”
HeightZero’s scalable infrastructure makes it easy to integrate with licensed, regulated custodians such as BitGo, for the safekeeping of the crypto assets managed through their platform. As a leader in digital asset security, custody, and liquidity, BitGo is the operational backbone for more than 1,500 institutional clients in over 50 countries. Assets custodied at BitGo Trust are held in offline accounts known as cold storage wallets, which are maintained under rigorous standards and subject to regular independent audits to ensure the safety and security of client funds.
“Many registered investment advisors receive client inquiries about investing in digital assets. Until now, there was little RIAs could do to meet this demand,” said Adam Sporn, BitGo Managing Director and Head of Prime Brokerage. “This partnership allows RIAs to invest in this asset class without changing their regular course of business, enabling everyone to drive net new client acquisition and benefit from the historic returns displayed over the past 15 years in the most secure and compliant environment in crypto.”
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HeightZero is an open technology solution that brings together best in class market capabilities allowing asset managers such as financial advisors, family offices, SMAs and broker dealers to gain exposure to the rapidly expanding crypto ecosystem on behalf of their clients, through direct investment. Their turnkey asset management platform (TDAMP) provides a security-forward suite of features that aim to simplify the inherently complex practice of investing in cryptocurrencies, while also providing peace of mind for both investment managers and their clients.
Founded in 2019 by a team of fintech experts, cryptographers and ETF strategists with decades of combined experience, HeightZero is focused on a simple goal: Provide transparent access to digital assets in an intuitive, scalable and secure manner.
CoinDesk Indices (CDI) a subsidiary of CoinDesk, has been the leading provider of digital asset indices by AUM since 2014. We are driven by precision, rigor, research and a desire to educate the marketplace and empower investors. CoinDesk, a media, events, data, and indices company, is the most influential and trusted platform for the global crypto ecosystem.
CDI has three distinct product lines: single-asset reference indices, broad market and sector indices, and systematic strategy indices. The CoinDesk Bitcoin Price Index (XBX) has the longest index track record and underlies the world’s largest digital asset products. Our broad market and sector indices offer the most comprehensive broad market benchmarks, and our investible sectors are constructed using CDI’s industry-adopted taxonomy. Our systematic strategy indices help investors target specific outcomes.
BitGo is the first digital asset company that has been focused exclusively on serving institutional clients since 2013. BitGo provides institutional investors with custody, staking, liquidity and security solutions. Active in both centralized and decentralized finance, BitGo offers market leading trading, lending, and borrowing services through its prime brokerage services.
In 2020, BitGo launched BitGo Prime, Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. Most recently, BitGo launched institutional-grade DeFi, NFT and web3 services. BitGo processes approximately 20% of all global Bitcoin transactions, and supports over 600 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries. For more information, please visit http://www.bitgo.com.
Neither HeightZero, CoinDesk Indices or BitGo are investment advisers and make any representation regarding the advisability of any products described therein. This article is intended for information purposes only and should not be considered investment, tax or legal advice. ©2023 HeightZero, LLC. All rights reserved.
CoinDesk Indices, Inc. (“CDI”) does not sponsor, endorse, sell, promote, or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index. CDI is neither an investment adviser nor a commodity trading advisor and makes no representation regarding the advisability of making an investment linked to any CDI index. CDI does not act as a fiduciary. A decision to invest in any asset linked to a CDI index should not be made in reliance on any of the statements set forth in this document or elsewhere by CDI.
All content contained or used in any CDI index (the “Content”) is owned by CDI and/or its third-party data providers and licensors, unless stated otherwise by CDI. CDI does not guarantee the accuracy, completeness, timeliness, adequacy, validity or availability of any of the Content. CDI is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CDI does not assume any obligation to update the Content following publication in any form or format. ©2023 CoinDesk Indices, Inc. All rights reserved.
- (1) https://www.statista.com/statistics/1251309/total-aum-investment-advisors/
- (2) https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/The-Bitwise-VettaFi-2023-Benchmark-Survey.pdf
- (3) Based on assets under management since 2014