Trakx, IFAs Gateway for Advanced Crypto Indices

With Bitcoin breaking the $100,000 barrier in December 2024, more and more IFAs (Independent Financial Advisors) are starting to consider and include crypto assets in their clients’ portfolios. Several factors prompted IFAs to change their perspective and consideration of digital assets, including the approval of Bitcoin spot ETFs in January 2024 in addition to recently breaking the psychologically-significant six figure price barrier. Indeed, several financial managers have also expressed regret and remorse for being wrong about cryptocurrencies and Bitcoin in particular, including tradfi thought leaders such as Larry Fink – CEO of BlackRock – and various other influential financial managers who were initially skeptical about crypto assets.

Recognizing that the financial world is changing, more and more high-net worth and retail investors want to get exposure to cryptocurrencies and IFAs are starting to adapt their strategies to suit their client’s beliefs, needs, and goals. However, the market is still young and complex, and it’s difficult to conduct effective fundamental and technical analysis on this emerging and dynamic asset class. This is where Trakx positions itself as a solution and gateway for IFAs, offering sophisticated crypto products tailored to every investor’s needs and risk tolerances.

Why Should IFAs Choose Trakx as a Partner?

Trakx is a highly regulated crypto-index trading platform that currently offers the widest selection of crypto indices. It provides investors with a smart way to diversify their portfolios, implement advanced strategies, and implement sound risk management practices. IFAs incorporating crypto assets in their clients’ portfolios face various challenges, such as portfolio management across multiple blockchains, ensuring compliance, market volatility, and complexity in selecting the digital assets with the most potential. Trakx addresses all these issues and is therefore the ideal partner for IFAs.

Widest selection of crypto indices

The crypto indices’ offering is currently the widest available, providing IFAs with many solutions based on risk tolerance, goals, amount of capital, investing strategy, market segment, and more. It sets the platform apart from the competition, and it is making Trakx the favorite choice among IFAs.

Proprietary algorithms and in-house scalable technology

Having developed in-house proprietary technology and algorithms, Trakx can scale its offerings without limit, reducing associated fees and ensuring IFAs and financial institutions can not only create new crypto indices at their will. Moreover, this entire process has been streamlined so that it can be completed in hours rather than days or weeks. This is a significant advantage that sets Trakx apart and ensures scalability, security, low costs, and continuous innovation.

Secure custody of assets

Trakx implements first-class security measures by collaborating with leading custodians, such as Fireblocks and Coinbase, guaranteeing investors’ peace of mind. Funds are stored in cold wallets and no Trakx member can move funds independently thanks to a multi-signature protocol. The funds are fully insured against hacking and theft.

Customized solutions

Finally, if the current selection of crypto indices is not enough, IFAs can create new crypto indices with Trakx Solutions, which allows financial advisors, institutional firms, DAOs, communities, and high-net investors to create customized crypto indices based on their personal needs, making the possibilities unlimited.

Backed by the best in class companies

Trakx is backed by relevant investors, such as Consensys (founded by the co-founder of Ethereum, which also owns Metamask wallet), Paris-Dauphine Incubator, and Bpifrance, allowing Trakx solid support for long-term development and ensuring the robustness and reliability of the platform.

Professional team of finance and tech experts

The Trakx team is composed of an experienced multidisciplinary team of institutional finance, crypto, fintech, and technology experts, with members who have worked at world-renowned organizations such as Fidelity, Goldman Sachs, BNP Paris, Bloomberg, and many more. It ensures professionalism, high competence in finance and technology, and reliability.

How Trakx is Collaborating with IFAs

By democratizing access to crypto-assets through passive investment solutions in Crypto Tradable Indices (CTIs), Trakx is already partnering with various IFAs and has developed a tailored solution for financial advisors (CGPs) through discretionary management mandates, enabling advisors to assist their clients from setup to ongoing management.

Trakx offers the following solution to IFAS:

• Three crypto-asset diversification mandates:
  • Conservative: It replicates a conservative risk profile crypto basket, composed of 50% Bitcoin Control15 CTI, 25% Bitcoin Ether 50/50 CTI, and 25% Top Blockchain CTI.
  • Balanced: This instrument replicates a balanced crypto basket, composed of 50% Top Blockchain CTI, 25% Bitcoin Control15 CTI, and 25% Bitcoin Ether 50/50 CTI.
  • Growth: This CTI is designed for aggressive investors, composed of 75% Top Blockchain CTI, and 25% Bitcoin Ether 50/50 CTI.
• Monthly rebalancing of portfolio allocations.
• Quarterly reporting.

With crypto-assets four to six times more volatile than stocks, Trakx believes that crypto-assets can occupy a small but meaningful place in the IFAs clients’ portfolios, for diversification purposes across traditional asset classes (stocks, bonds, real estate). This is particularly relevant for hedging against inflation with Bitcoin and leveraging its potential for long-term structural growth.

Additionally, major altcoins offer value propositions that differ from Bitcoin, the dominant market leader. Examples include decentralized computing (with blockchains like Ethereum and Solana) or oracles that connect blockchains to external world data (such as Chainlink). These features may potentially lead to outperformance over time compared to Bitcoin.

Trakx is participating in events dedicated to IFAs

Trakx is proud to have introduced crypto solutions at various conferences in France: the Grand Forum Du Patrimoine in Paris, and the Patrimonia conference in Lyon, to name just a few. They also organise regular webinars to keep their audience informed of the latest trends in the digital-asset area.

By partnering with our renowned ambassadors in the world of IFAs, such as Anthony Calci, founder of Calci Patrimoine, Trakx is keen on presenting innovative solutions to set new standards for crypto investments. The initial focus has been in France, but Trakx is expanding its presence across Europe and worldwide, participating in relevant events and conferences.

Benefits of Trakx Crypto Tradable Indices

Similar to traditional market indices like the S&P 500 or NASDAQ Composite, Trakx’s crypto indices are diversified crypto baskets designed to track specific sectors, themes, or performance metrics, allowing investors to get holistic or thematic exposure to predefined baskets, offering multiple benefits:

Easy diversification

With crypto indices, IFAs can offer their clients a smart and easy way to get holistic, thematic, or get strategic exposure to digital assets, obtaining diversification with ease.

Sound risk management

Risk management is essential if you want to be a profitable crypto investor, especially if you’re an IFA who is advising clients looking to get exposure to digital assets. Crypto indices include assets that are selected upon criteria on market capitalization, liquidity, trading volume, exchanges, ensuring that when a token doesn’t meet the predefined criteria it is excluded from the basket. 

Thematic exposure

Crypto trends are dynamic and change quickly, and some investors want to implement sector rotation trading strategies to take advantage of it. By offering the widest selection of thematic crypto indices, Trakx offers the opportunity to invest in specific market segments with ease, such as RWA, AI, DePin, Memecoins, Gaming, PoS, and many more. 

Advanced smart beta strategies

Trakx offers various smart indices that allow IFAs and investors to maintain predefined levels of volatility and exploit market inefficiencies based on quantitative strategies. 

Passive management and automatic rebalancing

All the crypto indices are automatically rebalanced based on predefined parameters, such as market cap, liquidity, volume, and technical indicators. Most are rebalanced monthly, ensuring passive management while staying ahead of trends, while others are rebalanced daily to implement momentum trading or other advanced strategies. 

Cost efficiency

Since crypto indices are automatically rebalanced periodically, you don’t need to worry about fees since everything is executed in the backend, reducing associated fees.

Liquidity & tradability 24/7

Unlike crypto ETFs, which are tradable only during traditional market hours, crypto indices are tradable 24/7, allowing investors to open/close positions at their own convenience. Crypto indices are backed 1:1 with the underlying assets, ensuring liquidity at any time and decreasing risks.

Compliance and regulation

Trakx is registered as a DASP (Digital Asset Service Provider) with the AMF (Autorité des Marchés Financiers), ensuring clients can have peace of mind by operating under a highly regulated and compliant crypto platform. 

In conclusion, we invite IFAs and financial institutions to contact us to develop a solid long-term partnership and set new standards for crypto investments together. We believe that democratizing access to advanced crypto-index strategy is the key to creating a more inclusive ecosystem and allowing investors to get smart exposure to digital assets with ease.