Ask five people which cryptocurrency to buy and you will hear five answers. Bitcoin, because it came first. Ethereum, for its role in decentralised finance, which means financial services built on blockchains. A smaller asset, for the chance of larger gains. Each answer has reasoning behind it, and each depends on one asset staying ahead.

Large Cap takes a different approach. It is a single investment that holds the five largest digital assets, weighted by market value and reconstituted every quarter. Reconstituted means the list is reviewed and reset to match the latest ranking. Instead of choosing one asset, an investor holds the group that leads the market at the time.

At a glance

• Large Cap holds the five largest digital assets, weighted by market value.

• The list is reconstituted every quarter.

• Fees: 1% to buy or top up, a 2% annual tracking fee, and 1% to sell.

How the index picks the five

Large Cap tracks the CoinDesk 5 Index (CD5), published by CoinDesk Indices. The index follows four rules:

• Selection: it draws from the largest digital assets by market capitalisation, which is the total value of all units of an asset in circulation.

• Exclusions: it leaves out stablecoins, tokens designed to hold a steady price such as one US dollar, along with several other asset types.

• Weighting: it weights the remaining assets by size.

• Reconstitution: the list resets every quarter, so the bundle changes when the ranking changes.

Bitcoin carries the majority of the index weight, so the movements of Large Cap have tracked those of Bitcoin in the periods covered by the fact sheet.

Diversification applied to crypto

Large Cap applies diversification to crypto, which means spreading exposure across several assets rather than concentrating it in one. Diversification has limits. Crypto assets tend to move in the same direction during a market-wide fall, so holding five does not remove the chance of loss. 

Owning more assets does not make a portfolio diversified, a point Luno covers in its guide to common misunderstandings about diversification. 

For a mix of crypto and equity exposure, BlueChip+ adds tokenised stocks to Bitcoin and Ethereum.

What it costs

Three fees apply to Large Cap:

• Buying or topping up: 1% fee.

• Holding: 2% annual tracking fee, which accrues daily.

• Selling: 1% fee.

Fees can differ by market, and the fact sheet for your market sets out the schedule and timing.

Get started

For readers new to crypto, a bundle holds a set of assets in one purchase, so there is no need to research each asset one at a time. Here are the details: