Saxo Bank launches crypto and blockchain theme basket
Multi-asset investment company Saxo Bank is launching a new theme basket focusing on crypto and blockchain companies. This basket provides inspiration and alternatives for investors that want exposure to cryptocurrencies but do not want to own ETNs or 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 can introduce a crypto and blockchain theme basket. The basket is Saxo Bank’s 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.
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.
The crypto and blockchain theme basket comes with very high risk. Traders can find out more about this basket here.