Securitize Launches First Tokenized S&P Index Funds

Securitize has launched two tokenized index funds – the first of their kind. According to a statement from Securitize, the Fintech has leveraged blockchain technology to offer the following S&P indices:

  • The Securitize S&P Cryptocurrency Large Cap Ex-MegaCap Index
  • The Securitize S&P Kensho New Economies Composite Index

Securitize states that these tokenized funds are indicative of the growing interest from institutional investors to gain the benefit of blockchain technology that offers greater efficiency and lower fees. The company also predicts that the tokenization of these funds is expected to be the beginning of a wave of fund tokenization over the coming year.

Accredited and institutional investors have access to S&P DJI’s indices in a tokenized format at a management fee of 0.5%. The funds will be offered through Securitize’s digital asset management arm, Securitize Capital, and available on its alternative assets marketplace, Securitize Markets, alongside Securitize Capital’s existing Bitcoin and USDC yield funds.

The funds are open for investment immediately and are using the Algorand blockchain.

“S&P DJI’s innovation and leadership in tokenizing its indices is a major sign that institutions understand the many advantages of tokenization–from efficiency to easier investor access–and, I anticipate will be the start of a wave of tokenized funds over the coming months,” said Scott Harrigan, CEO of Securitize Markets. “Securitize Markets offers institutional, accredited and retail investors a diverse and growing range of tokenized investment opportunities under one roof, from equity in private businesses to yield funds to, now, index funds, and we couldn’t be more excited to work with S&P DJI.”

Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices, said they were excited to work with Securitize on the two indices.

Wilfred Daye, Head of Securitize Capital, called the move bold and an important single to the market.

“The new tokenized funds provide investors exposure to a diverse blend of cryptocurrencies and emerging technologies. In particular, they are a new, efficient option for family offices, institutions and accredited investors looking for exposure to promising cryptocurrencies and exposure to disruptive global companies.”

The S&P Cryptocurrency Large Cap Ex-MegaCap Index has experienced an over 200% return year-to-date.

The S&P Kensho New Economies Composite Index, which offers exposure to global investments in technologies such as Fintechs, AI, VR, nanotechnology, and more, has achieved an approximately 27% annualized return over the past three years.

Securitize is partnering with Anchorage Digital Bank as custodian, and Copper Technologies, and Interactive Brokers in investing in and managing the funds’ assets.

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