Crypto asset management platform Mudrex has launched ‘Coin Sets’ — a mutual-fund-like crypto investment product aimed at retail investors. The Bengaluru and San Francisco-based startup is backed byNexus Venture Partnersand Y Combinator.
Founded in 2018 by Edul Patel, Rohit Goyal, Alankar Saxena, and Prince Arora, Mudrex seeks to simplify crypto investments for retail investors by packaging crypto tokens in a way that is similar to existing investment products like mutual funds and exchange-traded funds.
Coin Sets are ‘baskets’ containing different crypto tokens that all fall under a particular category or theme. For example, the ‘DeFi 10’ Coin Set has the top ten DeFi tokens and the ‘NFT’ Coin Set is a basket of the top 6 NFT projects. Just like mutual funds are managed by professional money managers, Coin Sets are managed by Mudrex’s experts.
The biggest burden on widespread crypto adoption is concerns about stability, risks, and security. Mudrex takes care of allocation, order execution, periodic rebalancing, and diversification of these crypto portfolios to mitigate potential risks.
“It is a mutual fund-like product with a better risk-reward ratio,” said Mudrex co-founder and CEO Edul Patel, commenting on the launch of Coin Sets. “The product is designed to expand retail participation in crypto investment, curated suitably for investors who look at crypto investments as long-term wealth creation.”
In recent months, many crypto exchanges and startups have diversified beyond their core offerings by offering lending and investment products.
For example, Ahmedabad-based crypto exchange platform ZebPay launched crypto-basedfixed deposits and SIP options. Another Indian crypto exchange, WazirX, launched an NFT marketplace for Indian artists.
The India’s Crypto Industry Growth
Last month, Indian banks eased restrictions on the purchase of cryptocurrencies through their channels based on anRBI notification that came after a supreme court rulingwhich struck down a ‘crypto-ban’.
The regulatory breathing room and other factors resulted in India being the second-highest country in the Central and Southern Asia and Oceania regions when it comes to cryptocurrency adoption.
While India has the largest number of crypto users in the world with over 10 Cr users (according to BrokerChooser), the country ranks fifth when it comes to the number of crypto users as a percentage of the total population.
The popularity of mutual funds in the country has been on a steady increase for a number of years: the Indian Mutual Funds industry’s average assets under management (AUM) grew from INR 6.42 Tn in 2011 to INR 36.7 Tn in 2021: an increase of more than 550%.
With the launch of Coin Sets, Mudrex will be attempting to tap into Mutual Funds’ newfound popularity. With mutual fund companies spending hundreds of crores on advertisements, Mudrex has been able to maintain steady growth.
