CoinDesk Indices, the underlying index provider for this product launch, sat down with Eric Ervin, CEO of Onramp Invest, to discuss how advisors can now access comprehensive crypto indices on Onramp’s Marketplace.
What follows is an interview with Eric Ervin, CEO of Onramp Invest. The interview was conducted by CoinDesk Indices and is not associated with CoinDesk editorial.
1. What is your view on where the crypto industry is heading to?
There’s perhaps no industry more exciting than digital assets right now. We’re still in the nascent phase of its growth, and even at this stage, this asset class is already doing so much to change the world of finance for the better. Other industries, such as real estate, gaming and entertainment, are also in early stages of major shifts driven by digital assets and blockchain. We’re starting to see tokenization bring out more opportunities for investors by applying blockchain’s efficiency and borderless potential to existing traditional market methods. With the market currently moving in a more positive direction and the emergence of new regulatory frameworks aimed at protecting investors, we believe cryptocurrencies are going to find even more ways to reach their full potential.
2. You’ve mentioned the connection between The Great Wealth Transfer and what it means for alternative investments like cryptocurrencies and other digital assets. How do you think the next generation of inheriting investors see the future of blockchain?
The millennial generation and younger are the most educated investor group that we've ever seen; in fact, they are the most educated generation in history. They want to try new things, and they're about to inherit trillions of dollars worth of wealth. They are curious, and even though cryptocurrencies give them more opportunities to invest independently, there is evidence that they want blockchain investing guidance from advisors; as their wealth grows, it is only natural to assume they will seek additional help. We think we're going to see a kind of evolution into a hybrid management approach where advisors can support, manage, and advise on client assets while still allowing them to maintain autonomy and direct input on strategy. This generation doesn’t want to set it and forget it—they’re intrigued by innovation and want to be involved in it.
3. Why do you feel crypto indices are so critical for advisors? When you’re considering partners to work with in the indices space, what do you look for?
The digital asset space is moving quickly, and the number of cryptocurrencies available to follow can be overwhelming for anyone—particularly for advisors who are managing traditional assets, as well. The average advisor will probably only be looking to allocate 3-10% of a client’s portfolio to digital assets. They don’t want to spend 90% of their time doing research. Digital asset indices allow advisors to utilize leading market research from top firms that are on the pulse of the market and take some of the more nuanced guesswork out of investing by creating a diversified exposure. We are very fortunate to be able to partner with innovative firms like CoinDesk Indices (CDI) which specializes in cutting edge, extensive market and analytical research. We also prioritize partnering with firms that can show a consistent track record and put an emphasis on compliance in an evolving regulatory space.
4. Tell us about the offering and the underlying indices.
By partnering with CDI, Onramp can provide advisors with a wider range of options so that these advisors can create models aligned with their clients’ desired exposures. The indices now available on Onramp’s flexible platform include CoinDesk Market Select Index (CMIS), CoinDesk DeFi Select Index (DFX) and CoinDesk Currency Select Index (CCYS).
CDI's indices are designed to measure the market capitalization weighted performance of some of the largest and most liquid digital assets that meet certain trading and custody requirements. The indices are based on the Digital Asset Classification Standard (DACS), with each index consisting of different digital assets.
As of April 4, 2023:
- DFX consists of the following assets: Aave (AAVE), BCurve DAO Token (CRV), Synthetix (SNX) and Maker (MKR).
- CCYS consists of the following assets: Bitcoin (BTC), Litecoin (LTC), Stellar (XLM), Bitcoin Cash (BCH) and Quant (QNT).
- CMIS includes 27 different constituents within 5 of CDI's crypto sector indices, offering broad market access while also having filters and screens in place for liquidity.
5. Where can people go to get more information about the indices?
About Onramp Invest
Onramp is a turn-key digital asset management platform that seamlessly connects traditional and digital asset financial infrastructures. Through Onramp, financial professionals can onboard clients to the digital asset investing ecosystem in minutes, both view held-away accounts and directly invest in digital assets, and access an expanding library of models, indices, and portfolio management services.
About CoinDesk Indices
CoinDesk Indices (CDI), a subsidiary of CoinDesk, has been the leading provider of digital asset indices by AUM since 2014. We are driven by precision, rigor, research and a desire to educate the marketplace and empower investors. CoinDesk, a media, events, data, and indices company, is the most influential and trusted platform for the global crypto ecosystem.