The Index Coop is delighted to announce the launch of the Index Coop CoinDesk ETH Trend Index (cdETI), a tokenized implementation of CoinDesk Indices' Ether Trend Indicator designed to take advantage of ETH's price volatility, without the need for constant market monitoring and active trading.
Individuals are notoriously bad at timing the market. cdETI offers holders an automated way to expose themselves to ETH's volatility, with the token aiming to capture gains during bull phases and preserving capital during bear phases.
"The Ether Trend Indicator is designed to detect the presence, direction, and strength of trend in the price of ether. We built it to drive client-developed outcome-oriented ETH strategies that help deliver a smoother ride," said Andy Baehr, CFA, Managing Director at CoinDesk Indices. "We are excited to collaborate with Index Coop for cdETI, the first on-chain ETI-driven product."
CoinDesk Indices Ether Trend Indicator (ETI) identifies trends in ETH's price movement by comparing recent prices to older prices over a recent historical period. If recent prices are higher, an uptrend might be indicated; if recent prices are lower, a downtrend may be in place. The ETI uses four different lookback windows chosen with the 24/7 trading cycle of crypto assets in mind. Backtest data shows cdETI outperforming ETH over the last two years.
Disclaimer: cdETI is a very high risk product unsuitable for many crypto users. Past performance is no guarantee of future returns. The performance of cdETI is dependent on CoinDesk's ETH Trend Indicator, cdETI's methodology and tracking and various other factors. Please seek professional advice before buying cdETI. cdETI may deliver zero or negative returns compared to holding ETH or stablecoins. See larger disclaimer below.
cdETI uses the ETI to allocate capital to assets based on the up or down trend. When the trend indicator signals that ETH's price momentum is stalling or downwards, the token allocates more to USDC. When the trend indicator signals that ETH's price appreciation is gaining momentum, the token allocates more to wETH. cdETI makes the trend index available for users for the first time in a simple ERC20 token.
"ETH has always been a remarkably volatile asset, making it the perfect candidate for a trend product," said Jordan Tonani, Index Coop's Head of Institutions, "We're optimistic that this strategy will make gaining exposure to ETH a more attractive proposition for users who may have been concerned about volatility or the need to actively manage an ETH position. cdETI could also be an interesting product for sophisticated users looking to try and outperform ETH."
For more information visit Index Coop's CoinDesk ETH Trend Index (cdETI) page.
About Index Coop
The Index Coop is a decentralized autonomous organization (DAO) and the leading provider of on-chain structured products. Our diversified and automated products provide exposure to major themes and strategies in crypto. We currently offer sector, leverage and yield-generating products via ERC20 tokens that are easy and simple to use.
Press contact: crews@indexcoop.com
About CoinDesk Indices
CoinDesk Indices (CDI), a subsidiary of CoinDesk, has been the leading provider of digital asset indices by AUM since 2014. CDI is driven by research and a desire to educate the marketplace and empower investors. CoinDesk is the most trusted media, events, indices and data company for the global crypto economy.
Contact: Crews Enochs
Email: crews@indexcoop.com
Telegram/Twitter: @theyoungcrews
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