What follows is an interview with Christo de Wit, South Africa Country Manager for Luno. The interview was conducted by CoinDesk Indices and is not associated with CoinDesk editorial.
Q1: What are you hearing from your customers about investments and crypto?
We think of today’s market as quite dynamic; despite recent downturns, we’re still seeing continued demand for diversified exposure to crypto. Luno is a trusted crypto guide to over 11 million global customers with a 10-year track record. Despite the complexity of investing in digital assets, customers know that we are highly selective and undertake a rigorous process prior to adding coins to the Luno app or working with any third parties. Our customers receive the trusted crypto experience that they expect from us and are accustomed to while being exposed to diverse opportunities that are available to them in the digital asset ecosystem.
Q2: What’s the appeal of crypto investment bundles?
Investing in crypto can be intimidating, with a degree of confusion infused into it as there are over 10,000 digital assets. Not many managers have the time and expert-level knowledge to investigate which coins are likely to succeed and assess their potential risks. If you cannot pick individual winners and losers, then it usually makes sense to diversify. So, customers are looking for an easy way to build their crypto investment portfolio in a diversified manner. I’d like to underline that our diligently selected and structured crypto bundle offers customers an easy way to control their investments that is simplified for them and easy to manage.
Q3: What made you choose CoinDesk Indices as the underlying index provider for your investment bundle?
On one hand, Luno is dedicated to empowering customers in their investment decisions, so the ability to offer a chance to explore diversified investment bundles makes sense for us. On the other hand, quality and reliability are always the most important considerations at Luno, and so we only work with companies for whom quality and reliability are of paramount importance as well. With that in mind, we saw that CoinDesk Indices already applies our desired quality standards that are intended for investability; only crypto assets that meet CoinDesk’s selection criteria are included, so assets like meme coins won’t be included. In addition, according to data from Bloomberg as of March 31, approximately 70% of global crypto product assets under management track indices that are provided by CoinDesk Indices. Lastly, CoinDesk Indices has the longest track record of any crypto index provider with the broadest suite of multi-asset offerings in the digital asset space, which means customers can access reliable and diversified options to expand their investment portfolios.
Q4: Does the bundle stay up to date with the movements in the market?
The investment bundle moves with the market and is updated automatically by Luno to track CoinDesk’s indices. This means that your portfolio is always kept up-to-date with the crypto market exposure you’ve selected to best suit your investment approach. We rebalance bundles every three months in line with the rebalancing of the indices at CoinDesk Indices.
Q5: Why should customers invest in a bundle with Luno?
Our app makes it easy to learn more about bundles and the CoinDesk indices that they track. They can conveniently see the balance of their bundle, including a clear profit and loss statement and a table showing the weighting per coin, all in one place. For more information, visit www.luno.com.