Hashdex has launched a crypto basket ETP in Europe harnessing both equal-risk and momentum factors.

The ETP offers smart beta access to the twelve largest crypto assets.

The Hashdex Crypto Momentum Factor ETP has been listed on SIX Swiss Exchange in US dollars (Ticker: HAMO SW), pound sterling (HAMOGBP SW), euros (HAMOEUR SW), and Swiss francs (HAMOCHF SW).

The ETP is linked to the Vinter Hashdex Risk Parity Momentum Index which consists of the 12 largest crypto assets by current market capitalization.

Constituents are initially weighted by risk parity which targets a balanced contribution of risk from each underlying crypto asset. Aiming to reduce total portfolio variability under a variety of conditions, the risk parity approach may be particularly appealing to investors who are concerned with the heightened volatility inherent within the crypto asset space.

The index then calculates a momentum score for each underlying crypto asset. The momentum score, which is expressed between 1-100, reflects a crypto asset’s risk-adjusted price performance over the past 30 and 60 days relative to the other crypto assets in the portfolio.

Each crypto asset’s risk-parity weight is then multiplied by its momentum score, and the resulting portfolio weights are normalized in order to sum up to 100%.

Rebalancing occurs on a monthly basis.

The ETP comes with a management fee of 1.49%.

HAMO is the second crypto ETP from Hashdex in Europe following the May 2022 launch of the Hashdex Nasdaq Crypto Index Europe ETP (HASH SW). HASH, which also has a management fee of 1.49%, tracks the Nasdaq Crypto Index Europe which is designed to be broadly representative of the investable cryptocurrency market for institutional investors.