HeightZero and CoinDesk Indices Partner to Bring Index-Based Digital Asset Exposure to Financial Advisors

Launch of large-cap offering provides efficient, simplified access to the crypto ecosystem

HeightZero, a cutting-edge turnkey digital asset management platform (TDAMP), announced the availability of the CoinDesk Large Cap Select Index (DLCS) within their offering. The DLCS index will allow investment advisors, an industry with over $128T in managed assets (1), to easily provide their clients with direct exposure to a wide array of crypto assets in a secure, scalable, and transparent framework.

Ninety percent of advisors are fielding questions about digital assets, but only 15% are actually allocating to crypto in client accounts, according to a recent industry survey by VettaFi and Bitwise (2). Advisors cited the failure of centralized institutions like FTX, custody concerns and lack of easily accessible investment vehicles as key reasons for either not increasing investments in crypto assets or making any allocation at all. While investor interest in digital assets remains bullish, a lack of reliable, easy-to-use investment solutions persists, which is why HeightZero has created an all-in-one solution to simplify access.

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“We continue to see institutional demand for safe, diversified exposure to the crypto ecosystem, even amidst the recent market downturns,” said AJ Nary, Co-Founder of HeightZero. “These crypto indices can provide financial advisors access to a thoughtfully designed, diversified portfolio of assets, rather than having to pick and choose specific coins and tokens. And with the assets being held at a licensed custodian, there is peace of mind that their clients funds are safe.”

To bring this solution to market, HeightZero has partnered with CoinDesk Indices, the leading provider of digital asset indices (3) and creator of the DLCS index, and BitGo, a pioneer in delivering institutional grade custody solutions for the digital asset economy.

The CoinDesk Large Cap Select Index is designed to measure the market capitalization weighted performance of some of the largest and most liquid digital assets that meet predefined trading and custody requirements. DLCS is based on the Digital Asset Classification Standard (DACS). Constituents must be included in DACS to be eligible for the Index. As of January 4, 2023, DLCS consisted of the following assets: Cardano (ADA), Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC) and Solana (SOL).

“DLCS offers a simple exposure into crypto beyond bitcoin with confidence that the altcoins meet our quality standards intended for investability. For example, the index rules initially eliminated FTT since it wasn’t priced by at least two eligible exchanges,” said Jodie Gunzberg, CFA, Managing Director, CoinDesk Indices. “We are thrilled about the partnership with HeightZero to enable access to the investable, large cap digital asset market.”

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HeightZero’s scalable infrastructure makes it easy to integrate with licensed, regulated custodians such as BitGo, for the safekeeping of the crypto assets managed through their platform. As a leader in digital asset security, custody, and liquidity, BitGo is the operational backbone for more than 1,500 institutional clients in over 50 countries. Assets custodied at BitGo Trust are held in offline accounts known as cold storage wallets, which are maintained under rigorous standards and subject to regular independent audits to ensure the safety and security of client funds.

“Many registered investment advisors receive client inquiries about investing in digital assets. Until now, there was little RIAs could do to meet this demand,” said Adam Sporn, BitGo Managing Director and Head of Prime Brokerage. “This partnership allows RIAs to invest in this asset class without changing their regular course of business, enabling everyone to drive net new client acquisition and benefit from the historic returns displayed over the past 15 years in the most secure and compliant environment in crypto.”