Reserve, the crypto firm behind decentralized token folios (DTFs), announced the launch of the Large Cap Index DTF (LCAP) on Sep. 24.
DTFs, are positioning themselves as the crypto world’s answer to traditional ETFs, offering instant exposure to digital assets through a single investment.
Tracks 10 cryptocurrencies like Bitcoin, Ethereum, and XRP
Launched in partnership with CF Benchmarks, the U.K. FCA-regulated crypto index provider behind BlackRock’s Bitcoin ETF, LCAP is an index token that offers exposure to a diversified basket of large-cap crypto assets. The token tracks the CF Large Cap Index that is calculated and published by CF Benchmarks.
LCAP tracks a total of ten diversified-weighted cryptocurrencies, including Bitcoin, Ethereum, and XRP. It lets eligible traders gain exposure to the leading crypto assets with the simplicity of ETFs.
Notably, LCAP is the first on-chain index token to trade on the Kraken platform.
Exposure to 95% of crypto market cap
LCAP is backed 1:1 by crypto assets held in smart contracts which are benchmarked and weighted as per the CF Benchmarks Large Cap Index and rebalanced on a quarterly basis.
A trader can always redeem the DTF for the crypto assets in the basket so that its value remains completely aligned with the underlying digital assets.
Thomas Mattimore, CEO of ABC Labs, a contributor to the Reserve ecosystem, said, “LCAP gives users access to approximately 95% of the total cryptocurrency market cap in a decentralized, diversified index-based investment product that looks and feels like an ETF, but with the speed and availability of crypto.”
CF Benchmarks CEO Sui Chung said, “By tracking our Large-Cap Index, LCAP will seamlessly deliver diversified exposure to the largest digital assets through one tokenized vehicle. The convergence of tokenization and robust benchmarking stands to open up new paths for investors to gain straightforward market access at scale.”
