Hedgehog Teams Up with CoinDesk Indices to Bring Crypto Sector Exposure to Automated Investing

What follows is an interview with Colton Dillion, CEO of Hedgehog. The interview was conducted by CoinDesk Indices and is not associated with CoinDesk editorial.

CoinDesk Indices, the underlying index provider for this product launch, sat down with Colton Dillion, CEO of Hedgehog, to discuss how advisors can now access crypto sector indices on Hedgehog’s direct indexing platform.

What does Hedgehog do for people who want to invest in cryptocurrency?

Hedgehog makes it easy to buy broad swaths of the cryptocurrency market with a single deposit and automatically manages your portfolio of digital assets in response to market movements. If you hold currency on-chain or at multiple exchanges, Hedgehog can also dynamically respond to these non-custodial holdings, allowing you to keep a balanced portfolio that's a blend between what we can manage for you and what we can't. This is especially useful when you want to manage a portfolio that includes holdings in cold storage without touching them.

How does Hedgehog work?

Hedgehog has a powerful direct indexing engine that adapts to the venues, transaction networks, and assets held in your portfolio. You can customize these portfolios to manage what you hold, what strategy you want to use to balance your holdings, and even set fixed asset allocations. In the case that you want to hold broad market strategies, Hedgehog also provides and recommends a strategy based on your personal financial situation, like our Satoshi stack (bitcoin) or our DeFi stack, which contain every asset we can hold for you that follows a selection rule.

How does this differentiate Hedgehog in light of recent regulatory issues in the US?

Hedgehog is differentiated from other providers of index-like capabilities in a few different ways. First and foremost, we are an SEC-registered RIA that has already completed our exam exit interview with the Commission and believes we have addressed all the feedback they gave us. We don't offer ETFs or publish indexes, but instead offer direct indexing via stacks that follow a strategy that is set to hold the actual underlying asset at a custodian. This means that not only are we able to be more compliant in an evolving regulatory landscape, but we also aim to be forward compliant with potential upcoming SEC rulemakings around audits.

How is Hedgehog helping users by bringing CoinDesk Indices to the app?

Hedgehog is expanding beyond the initial default stacks to include stacks that aim to track market indexes from the highly respected CoinDdesk Indices. These will have holdings as close as possible to the indexes offered by CoinDesk Indices, meaning that our users can benefit from their index experience and research.

Tell us about the offering and the underlying indices.

Hedgehog’s innovative platform for automated investing will soon feature digital asset sectors represented in the following CDI select sector indices, which include computing, culture & entertainment, currency, decentralized finance (DeFi) and smart contract platform. Notably, Hedgehog will also feature exposure to those sectors through a single market solution. The CoinDesk Market Select Index (CMIS) is the aggregation of all of these five select sector indices noted below into one index.

The sectors are based on CDI’s Digital Asset Classification Standard (DACS), which evaluates and categorizes a broad universe of digital assets into distinct sectors. The constituents within these sectors undergo a screening process to meet certain trading and custody requirements. Those that meet these criteria form the crypto sector indices, designed to measure the performance of some of the most important segments in the liquid digital asset market.

Where can people go to get more information?

To learn more and view the crypto sectors via the Hedgehog app and investment platform, please download the mobile application or visit the Hedgehog website.

*Being registered with the SEC as an investment adviser does not imply a certain level of skill or training.

Investments in digital assets and cryptocurrency are Not FDIC Insured, Not SIPC Insured, Not Bank or Government Guaranteed, and May Lose Value. Before investing consider your investment objective, risk tolerance, fees and expenses.

There is no guarantee that the client portfolio or the selected portion of the portfolio will mirror the index or that the performance will be identical. There is risk of portfolio drift and a difference of performance between the Stack and Index based on many factors including market movements, availability of digital assets, size of the client portfolio, among others.

CoinDesk Indices Disclaimer:

This content was produced by CoinDesk Indices, Inc. (“CDI”) and not the CoinDesk Editorial team. CDI does not sponsor, endorse, sell, promote or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index.

CDI is neither an investment adviser nor a commodity trading adviser and makes no representation regarding the advisability of making an investment linked to any CDI index. CDI does not act as a fiduciary. A decision to invest in any asset linked to a CDI index should not be made in reliance on any of the statements set forth in this material or elsewhere by CDI.

CDI indices, including all content contained or used in any CDI index (the “Content”), are owned by CDI and/or its third-party data providers and licensors, unless stated otherwise by CDI. CDI does not guarantee the accuracy, completeness, timeliness, adequacy, validity or availability of any of the Content. CDI is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CDI does not assume any obligation to update the Content following publication in any form or format.

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