How does the index divisor affect the performance of a cryptocurrency index fund?

1 answers

• May 06, 2022 · 3 years ago
  The index divisor is an important factor that affects the performance of a cryptocurrency index fund. It is used to adjust the index value based on changes in the prices of the constituent cryptocurrencies. When the index divisor decreases, it indicates that the fund's value is increasing relative to the cryptocurrencies. This can result in higher returns for investors. Conversely, if the index divisor increases, it suggests that the fund's value is decreasing compared to the cryptocurrencies, which can lead to lower returns. Therefore, the index divisor plays a crucial role in determining the performance of a cryptocurrency index fund.
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