Securitize Reveals Crypto Index Fund Supported by $400M from Mantle

Securitize has rolled out a fresh institutional-grade crypto index fund in collaboration with Mantle, which has made a whopping $400 million as an anchor investment, making it one of the largest institutional tokenized funds available in the market.

Nicknamed the Mantle Index Four (MI4), the fund provides access to large digital currencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and dollar-denominated stablecoins with an aim of being the "S&P 500 of crypto," as stated by the firm's announcement.

Market-Cap Driven Allocation With Staking Integration

MI4 fund utilizes a risk-weighted and market-capitalization allocation system that is built to offer diversified and balanced cryptocurrency holdings. In addition, quarterly rebalancing and staking methods are implemented to maximize the returns.

Staking will be carried out by mechanisms like Mantle's mETH, bbSOL offered by Bybit, and other ecosystem staking platforms, through which the fund can earn passive income for institutional investors.

"This fund captures all on-chain capital seeking smart beta strategies with income, providing a 'set-it-and-forget-it' solution that sidesteps direct custody complexities," commented Timothy Chen, Mantle's Global Head of Strategy.

MI4 Breaks Securitize's Prior Record Fund

Mantle's $400 million commitment makes MI4 superior to Securitize's existing record-breaking fund BCAP (Blockchain Capital III Digital Liquid Venture Fund) which totaled $148 million thus marking crypto investment's institutional progress.

The tokenization market for real-world assets has experienced tremendous growth during the past year because RWA.xyz shows that its blockchain market value has nearly doubled from $9.8 billion in April 2024 to over $21 billion today.

The market value of tokenized private credit combined with tokenized U.S. Treasuries accounts for the majority of increases in regulatory weighting assets (RWA). The RWA marketplace increases each year through $12.5 billion of tokenized private credit investments and $6 billion of tokenized U.S. Treasury debt holdings.

Securitize advances within this market segment by its recent acquisition of digital fund administration services from MG Stover, thus strengthening its Securitize Fund Services system, which helps businesses create funding opportunities through tokenized securities

The Bigger Picture: A New Era for Institutional Crypto Investing

The MI4 fund from Securitize responds to rising institutional need for crypto-assets accessibility through tokenized financial solutions, which require minimum operational complication. MI4, alongside similar products, stands to revolutionize how institutional capital participates in the crypto ecosystem because of increasing demand for the tokenization of real-world assets.

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