What is the Bitpanda Crypto Index and how does it work?

With the Bitpanda Crypto Index, you can now easily invest in a defined cryptocurrency portfolio which is reviewed automatically and adjusted to fast-changing market conditions on a monthly basis. This aims to reduce your Index portfolio’s exposure to unwanted market volatility.

The Bitpanda Crypto Index

Tip: In order to buy a Bitpanda Crypto Index, you need a verified Bitpanda account.

What is a Crypto Index?

A Crypto Index is a defined portfolio of selected cryptocurrencies that you can buy, sell or swap with just one click, instead of going through the process of buying and selling each coin individually. It helps you to easily diversify your cryptocurrency portfolio. Additionally, through a process called “rebalancing”, your portfolio gets adjusted to the most up-to-date market information on a monthly basis.

Available Indices

There are 3 Indices available on Bitpanda which you can choose to invest in:

  1. Bitpanda Crypto Index 5 (BCI5)
    Consisting of the top 5 coins by market capitalisation and liquidity
  2. Bitpanda Crypto Index 10 (BCI10)
    Consisting of the top 10 coins by market capitalisation and liquidity
  3. Bitpanda Crypto Index 25 (BCI25)
    Consisting of the top 25 coins by market capitalisation and liquidity

Tip: You can see the current composition of each Index on our website at any time.

How to buy a Bitpanda Crypto Index

You can buy a Bitpanda Crypto Index as easily as any other asset on Bitpanda. Simply follow these steps:

Desktop Mobile App (Android) Mobile App (iOS)
  1. Click on Trade in the top right
  2. Click on Buy
  3. Select the specific Bitpanda Crypto Index you want to invest in
  4. Select the fiat wallet you wish to use
  5. Choose the amount you want to buy and then click on Go to summary
  6. Next, you will see a summary of your order. After forgoing your right of withdrawal and accepting the monthly rebalancing, click on Buy now
  7. You will receive a confirmation of your purchase via email

Tip: You can also use Bitpanda Swap and Bitpanda Savings (on desktop only) in combination with the Bitpanda Crypto Index.

Note: The minimum amount for a single buy, sell or swap transaction is EUR 10 and the amount is distributed proportionally based on the current weightings of the coins included in the selected Index product. When you use the Bitpanda Crypto Index in combination with a savings plan, the minimum deposit amount is EUR 25.

Which coins are part of the Bitpanda Crypto Index?

All components and weightings of the crypto indices are calculated and provided by our product partner, MVIS - a VanEck company, and the current composition and price chart of the respective Bitpanda Crypto Index product is visible at all times in the prices detail view on our platform.

All cryptocurrencies included in any of our three Bitpanda Crypto Index products are reviewed and rebalanced on a monthly basis reflecting the most up-to-date market conditions. New coins may be added, some coins may be removed or replaced according to the coin’s market capitalisation and liquidity. This is called rebalancing and ensures that your Index portfolio always includes the top 5 (BCI5), top 10 (BCI10) or top 25 (BCI25) cryptocurrencies.

Tip: It is not possible for us to tell you upfront exactly how the composition of an Index will change over time, as this is dependent on a variety of aspects and ever-changing market conditions.

Index-Only-Coins

At Bitpanda, we want to give you easy access to all your preferred assets. With the Bitpanda Crypto Indices, we strive to expand that promise to coins and tokens that are, for various reasons, not yet natively supported with a wallet on our platform. This is why an Index can hold additional coins, so-called “Index-Only-Coins”. So, if you see a coin or token in your Index wallet that is not listed here, you can consider it an Index-Only-Coin.

Note: Keep in mind that, even if users contact us to enquire about this, we are unable to share any information on if or when an Index-Only-Coin will be supported via a native wallet on Bitpanda.

Tip: Not all cryptocurrencies available in the respective Indices will be fully integrated with a wallet on Bitpanda. These Index-Only-Coins are marked on Bitpanda so you can easily recognise them. For more details on Index-Only-Coins, please have a look at the official prospectus here.

What are the benefits of the Bitpanda Crypto Index?

One of the strengths of the Bitpanda Crypto Index is the convenience that comes with the product. Each of the three Indices mirror the performance of the market and get rebalanced  automatically to adapt to ever-changing market conditions. In addition, the Bitpanda Crypto Index allows you to diversify your portfolio by investing into a predefined selection of coins with just one click.

Selling a Bitpanda Crypto Index

If you want to sell your Index investment, then you can decide to either sell the entire Index at once or to only sell parts of it proportionally. This means if you sell 20% of your Bitpanda Crypto Index, you will sell 20% of each cryptocurrency included in your Index investment, according to its weighting at that point in time. The sold amount will be credited to your fiat wallet.

Tip: Keep in mind that it is not possible to only sell a certain asset from an Index. The amount you sell will be deducted proportionately from all assets within that Index according to its most recent weighting as defined in your personal Index wallet.

Rebalancing

Once a month, the Bitpanda Crypto Index will be adjusted according to changes in the crypto market as well as data calculated and provided by MVIS - a VanEck company. During this process, the components and weightings of the indices are reviewed and, as a result, reshuffled. This will be handled through automatic buys and sells in order to adjust your portfolio to current market information. The rebalancing is one of the biggest benefits of the Bitpanda Crypto Index. In general, the rebalancing is scheduled for the last trading day of the month.

Example

Take a look at this example to understand how the rebalancing can work to your benefit.

index_rebalancing_example_bci5.png

Are premiums involved?

Yes, trading premiums of 1.99% apply to every buy, sell or swap transaction within your Crypto Index. When your Crypto Index rebalances every month, a trading premium of 1.99% applies to the rebalanced amount, not to your entire portfolio.

You can also find a detailed overview of these premiums in the official prospectus here.

Tip: There are zero maintenance or custody fees. Bitpanda does not charge recurring or fixed fees (e.g. asset-under-management), but only charges for buys, sells and rebalancing. Learn more on how you can reduce premiums even more by using BEST.

Is there a detailed description of the product?

Yes, the official prospectus ensures full transparency of all relevant aspects of the product and is externally checked by an auditor. All relevant features of the product are described in this document. As an educated investor, please ensure that you read the prospectus before making an investment decision. 

FAQ

Take a look at some of the most frequently asked questions below.

Can I use Bitpanda Swap or Bitpanda Savings with the Bitpanda Crypto Index?
Yes, Bitpanda Crypto Index works with buy, sell and swap, and also via savings plans (on desktop only). Keep in mind that when you cancel or pause your savings plan, that this will only stop new purchases from happening. It will not sell your Index and your Index investment will remain active.
Why is a certain asset no longer visible in my Bitpanda Crypto Index portfolio? Or why is a new coin in my Index that wasn’t in it before?
This is due to the so-called rebalancing, an essential part of Bitpanda Crypto Index. By rebalancing your portfolio depending on current market conditions, your Bitpanda Crypto Index investment is adjusted to the most up-to-date market information on a monthly basis. Take a look at the rebalancing example above.
Why has the amount of coins inside my Bitpanda Crypto Index suddenly changed?
This is also a normal part of the rebalancing. The weightings of the assets inside each Index are automatically reviewed and adjusted according to the data provided by our partner MVIS - a VanEck company once a month. This explains why you may have less of one cryptocurrency (as it was sold over the course of the rebalancing) but more of another one (as it was bought over the course of the rebalancing). Have a look at the rebalancing example above to learn more.
How often does the rebalancing happen?
In general, the rebalancing happens monthly and takes place on the last trading day of a month.
Are all my Index transactions documented in my Bitpanda History?
Yes, there is a summarised view inside your History and additional details inside the CSV and PDF export.
Will Index-Only-Coins be integrated on your platform with a full wallet at some point?
We cannot share any information if or when an Index-Only-Coin will be supported via a native wallet on our platform. Keep an eye on our social media channels to stay up to date on the latest developments.
What are rebalancing premiums?
When your Crypto Index rebalances every month, a trading premium of 1.99% applies only to the respective buys and sells triggered by the rebalancing, not to your entire portfolio. You can find a detailed overview of all premiums in the official prospectus here.

Tip: There are zero maintenance, custody or any performance-related fees charged for your Bitpanda Crypto Index.

Does the BEST premium discount also apply for Index trading and rebalancing?
Yes, you can save on trading premiums on all buy and sells (also in course of the monthly rebalancing) by using BEST. You can learn more about all the benefits of the Bitpanda Ecosystem Token (BEST) here.
Do I need to pay taxes on Index trades or the rebalancing?
Since tax questions are very country specific, answering them goes beyond the scope of our Support. Please get in touch with your tax advisor in this regard. For general information, have a look at the official prospectus.

Learn more on how to download your transaction and purchase history here.

Tip: Additional questions are also answered in the FAQ on our website.

Troubleshooting

If you have questions about the Bitpanda Crypto Index that have not been answered above, please have a closer look at the official prospectus and our terms and conditions first.

Should questions remain or if you come across technical issues, don’t hesitate to contact us.

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