Swissquote has introduced an actively-managed crypto-focused certificate called Multi-Crypto Active Index on the Swiss stock exchange.
It is open to mainstream investors and allows them access to a diversified portfolio of four different cryptocurrencies, including bitcoin, bitcoin cash, ethereum and litecoin.
Swissquote said the new product reduces risk as investors are not exposed to one single digital currency.
Commenting on the launch, head of market strategy, Peter Rosenstreich, said: ‘'It is the next evolutionary step in our strategy of opening up the cryptocurrency market to the mainstream investor by creating investment opportunities that reduce volatility while offering the transparency that comes with the listing at the Swiss Exchange.’
To limit risk, the quantitative asset management team at Swissquote developed an algorithm that uses historic price information to allocate investments among the currencies.
The minimum share of each of the four cryptocurrencies is 10%, so the maximum weight of a single currency within the portfolio can go up to 70%.
Swissquote was the first European online bank to trade bitcoin on its platform in mid-2017. It then launched the first bitcoin certificate in November last year and in December 2017 it expanded its offer to five cryptocurrencies.