Show HN: Cryptocurrency Index Builder

pandaanalytics.com

37 points·billatpanda··4 comments

Passive investing has been proved to be one of the most effective methods in the long term. Our team has developed this tool for the crypto market, and give people who want to get crypto exposure a more data-driven approach.

On the other hand side, this tool is exploring a possibility to replace modern ETF, since with the tool you can build your own index (more flexible and transparent than a fund entity) and execute it through linking trade-only API keys -- the money never even leaves your exchange! Instead of any percentage-based fee in the fund management industry, we can turn it into a fixed cost (subscription model), since the computational cost is becoming way cheaper nowadays.

The tool looks pretty neat, but I don't think for average users they are able to "self-direct"; also, the ETF, many of the brokers, offers little to zero fee.

Unless there has been a new development, there are no approved crypto ETFs yet. There are crypto index funds with fees of 1%-2%.

That's not a bad option if you just want some diversity with minimal thought + effort. I think this tool offers a different option. With a little bit of thought and effort, you can save on the fees and customize the risk/return profile.

Also beyond the fee, there is not much flexibility that you could do with the constitutes of an index.

Some of the "no fee" ETFs are also not that great ... such as https://www.marketwatch.com/story/these-hidden-etf-fees-are-...

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