Cryptocurrency markets have evolved rapidly, drawing increasing interest from institutional and retail investors alike. With thousands of digital assets now available, navigating this complex landscape can be overwhelming. That’s where crypto index funds come in — offering diversified exposure to the market with minimal effort.
These funds automate portfolio management by tracking predefined indices based on criteria like market capitalization, liquidity, and technological innovation. Whether you're a beginner or a seasoned investor, crypto index funds provide a strategic way to reduce risk and capture broad market growth.
👉 Discover how automated crypto investing can simplify your portfolio strategy.
What Are Crypto Index Funds?
A crypto index fund is an investment vehicle that mirrors the performance of a specific cryptocurrency index — much like traditional stock market index funds track benchmarks such as the S&P 500 or Nasdaq.
These indices aggregate data from multiple cryptocurrencies, weighted by factors including market cap, trading volume, and developer activity. The fund then purchases the underlying assets in proportion to their weight in the index, enabling investors to gain exposure to a diversified basket of coins through a single investment.
“With Index, the know-nothing investors can actually outperform most investment professionals.”
— Warren Buffett
This principle applies just as strongly in crypto, where volatility and information overload make passive, rules-based strategies particularly valuable.
Benefits of Crypto Index Funds
- Diversification: Spread risk across multiple assets instead of relying on single cryptocurrencies.
- Passive Management: No need to monitor price swings or rebalance manually — the fund does it automatically.
- Transparency: Most funds publish real-time holdings and rebalancing schedules.
- Accessibility: Many allow small initial investments, making them ideal for newcomers.
- Institutional-Grade Tools: Designed with compliance and long-term performance in mind.
As crypto matures, more investors are turning to these structured solutions to avoid emotional trading and benefit from systematic growth.
Top 10 Crypto Index Funds in 2025
1. CIX.Fund — $11 Million Raised
CIX.Fund offers exposure to the CIX100, an AI-driven index that evaluates over 2,000 cryptocurrencies using more than 200 analytical factors. It processes over one million signals per second to identify the top 100 performing tokens.
Unlike traditional cap-weighted indices, CIX100 uses machine learning to assess fundamentals, community engagement, and technical momentum.
Key features:
- Monthly automatic rebalancing
- Real-time blockchain transparency
- Buyback mechanism for CIX100 tokens
- Plans to launch CIX50, CIX25, and CIX15 sub-indices
Backtesting suggests that allocating just 3% of capital to CIX100 while holding 97% in cash has historically outperformed full allocation to equities.
👉 See how AI-powered indexing could transform your investment approach.
2. Invictus Hyperion Fund — $10 Million Raised
Managed by Invictus Capital, this fund tracks the C10 Index, which focuses on the top 10 largest cryptocurrencies by market cap. It follows a straightforward capitalization-weighted model with quarterly rebalancing.
Founded by Daniel Schwartzkopff (also behind Crypto20), the team brings experience from both crypto and traditional finance. The fund operates within regulated frameworks and supports institutional-grade custody solutions.
While less innovative than AI-based models, its simplicity appeals to conservative investors seeking reliable diversification.
3. Crypto20 — $5 Million Raised
Crypto20 offers a decentralized tokenized fund (C20) representing a basket of the top 20 cryptocurrencies. It excludes Bitcoin and Ethereum from fees (to avoid double charging), focusing instead on mid-cap altcoins.
The portfolio is rebalanced monthly based on market cap rankings. Assets falling below threshold are replaced with emerging high-potential coins.
As a token-as-a-fund model, C20 allows seamless trading on exchanges, enhancing liquidity compared to closed-end funds.
4. Bitwise Investments — $4 Million Raised
Bitwise is one of the most recognized names in regulated crypto asset management. Based in the U.S., it offers several institutional-grade indices:
- Bitwise 10 Large Cap Index: Top 10 cryptos by market cap
- Bitwise 20 Mid Cap Index: Emerging mid-tier projects
- Bitwise 70 Small Cap Index: High-growth potential assets
- Bitwise 100 Total Market Index: Broad market coverage excluding forks and staking rewards
Rebalancing occurs monthly after rigorous manual review. Bitwise has submitted multiple Bitcoin ETF proposals to the SEC, signaling strong regulatory alignment.
5. Amun Crypto Basket Index (HODL5) — $4 Million Raised
Based in Switzerland, Amun provides ETP-backed access to the HODL5 Index, which tracks the top five most liquid cryptos: Bitcoin, Ethereum, Binance Coin, Solana, and Cardano.
Weightings are adjusted monthly using a “2050 market cap” methodology — projecting long-term sustainability rather than short-term dominance.
Notably, privacy coins like Monero and Zcash are excluded due to regulatory concerns. Backtested performance shows HODL5 outperforming Bitcoin by 3.91x since inception.
Available via Swiss stock exchanges, it’s ideal for European investors seeking compliant exposure.
6. Ember Fund — $1 Million Raised
Ember Fund stands out for its low entry barrier — users can start investing with just $100. It offers predefined portfolios managed by experts, including the Marius 5 S-Tier Index, featuring ETH, BAT, DENT, NEXO, and ENJ.
All transactions occur via Bitcoin only. Users can hold up to three different portfolios simultaneously.
A 1.5% withdrawal fee applies, but the platform remains user-friendly for beginners exploring passive crypto investing.
7. Cryptos Fund — Tracks CCi30 Index
The CCi30 Index includes the top 30 cryptocurrencies by market cap, rebalanced quarterly with monthly weight updates. Developed by mathematician Igor Rivin and financial experts, it emphasizes stability and risk-adjusted returns.
Although the fund’s website is under development, the index itself remains active and widely referenced in research circles.
8. Bitfinding — Beta Launch
Bitfinding uses its proprietary MKTCAP Index to enable automated tracking and instant reinvestment of gains. Through API integration with exchanges, it manages portfolios without holding user keys — enhancing security.
Currently in beta, it targets tech-savvy users who want hands-off management with full control over their assets.
9. ITI Fund
Based in Luxembourg, ITI Fund constructs indices using data from MVIS and CryptoCompare. Rebalanced quarterly, these funds consider both market cap and qualitative metrics like project maturity and ecosystem health.
With deep roots in traditional finance, ITI bridges conventional wealth management practices with blockchain innovation — especially appealing to EU-based investors.
10. Isonex Capital — Equal-Weight Strategy
Isonex Capital’s IX15 token provides exposure to the top 15 cryptocurrencies using an equal-weight strategy — each coin holds a 6.67% share regardless of size.
This approach avoids overconcentration in Bitcoin or Ethereum, potentially boosting returns during altcoin rallies. According to backtests:
- Outperformed market-cap weighting in 57% of one-year periods
- Beat benchmarks in 84% of five-year windows
- Surpassed all competitors in 10-year simulations
Designed for long-term wealth accumulation, IX15 maintains dollar correlation for stable value tracking.
Frequently Asked Questions (FAQ)
Q: Are crypto index funds safe?
A: Most reputable funds use secure custodians, publish transparent holdings, and undergo third-party audits. However, they still carry market risk — diversification reduces but doesn’t eliminate volatility.
Q: How often are crypto index funds rebalanced?
A: Typically monthly or quarterly. Some AI-driven funds like CIX.Fund adjust dynamically based on algorithmic signals.
Q: Can I invest with a small budget?
A: Yes! Platforms like Ember Fund accept as little as $100, making diversified crypto investing accessible to everyone.
Q: Do I own the underlying coins?
A: It depends on structure. Tokenized funds (e.g., CIX100, IX15) represent ownership; others may function like trusts or ETPs.
Q: Are there fees involved?
A: Yes — expect management fees between 0.5%–2%. Some charge performance or withdrawal fees too.
Q: How do I choose the right fund?
A: Consider your risk tolerance, geographic regulations, preferred strategy (AI-based vs. cap-weighted), and whether you want active or passive exposure.
Crypto index funds represent a mature approach to digital asset investing — combining automation, diversification, and transparency. As the ecosystem evolves, these tools will likely become standard for both new entrants and experienced traders.
👉 Start building a smarter crypto portfolio today with advanced indexing tools.