Launching a virtual currency version of S&P 500: Securitize and Mantle to launch a new index fund

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## Invest in a basket of coins

Securitize, a company specializing in the tokenization of real-world assets (RWA), announced on the 24th that it has partnered with Mantle, which is developing a Layer 2 solution for the cryptocurrency Ethereum (ETH), to launch a new financial product called the "Mantle Index Four (MI4) Fund."

This MI4 fund is a financial product that can invest in a basket of multiple cryptocurrencies. It eliminates the complexity of directly holding cryptocurrencies and is offered as a regulatory-compliant institutional-level financial product.

The assets constituting the MI4 fund are cryptocurrencies such as Bitcoin, Ethereum, Solana, and US Dollar stablecoins. The allocation is determined by market capitalization and risk, and it is reviewed quarterly, aiming to provide exposure to cryptocurrencies with high market capitalization.

Source: Securitize

Additionally, utilizing mETH from Mantle for staking in DeFi (Decentralized Finance) to increase returns is also a significant feature. It aims to enhance operational results without sacrificing compliance or investor protection.

Mantle, at the time of its launch, invested $400 million (approximately 57 billion yen) in the MI4 fund as an anchor investor supporting the fund.

Goals and Use Cases

Timothy Chen, the Global Head of the Strategy Division at Mantle, has made the following comments regarding this announcement.

MI4 will effectively become the S&P 500 of cryptocurrencies as an index.

Our basket, composed of major virtual currencies, aims to bring all funds seeking innovative indices (smart beta) on-chain, providing institutional investors with a solution that eliminates the complexity of direct ownership and allows for a hands-off approach after investment.

Additionally, the comments from Securitize CEO Carlos Domingo are as follows.

Through the Securitize platform, investors are able to access real-time liquidity, seamlessly interoperate their held MI4 funds in DeFi (decentralized finance), and utilize them as collateral.

We have developed a financial product that combines attractive yields with institutional-level structure and flexibility, while reflecting the strengths of traditional finance and providing the full potential of tokenized securities.

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