Startup Covalent has launched crypto indexes allowing investors to purchase a diversified portfolio of crypto currencies using the Covalent Bot.
The company says this lowers the barrier to entry by reducing the need for investors to research hundreds of tokens in order to make an educated investment decision.
“Educated investors in traditional markets often purchase ETFs or indexes to reduce risk. Until now, this has not been readily available in the crypto markets. Covalent allows investors to invest in the crypto sector via a diversified portfolio by simply activating the Covalent Bot,” says Tomer Bariach, Cofounder of Covalent. “Unfortunately, until now, many investors were forced to either spend days researching or simply gamble without full information.”
Importantly, this is not limited to accredited investors. Anyone who holds their crypto on a supported exchange can activate the Covalent Bot and will see their account automatically follow the index they selected. The first Covalent index, the COV5, tracks the top five crypto currencies and is free to anyone wishing to connect. The Covalent team promises more innovation is already in the pipeline.