Digital Art Market Tracker Fund

Your diversified investment opportunity in digital art

The Digital Art Market Tracker Fund was launched to track the NFT Art market with a focus on the leading profile picture Art collections (i.e. Bored Ape Yacht Club or Cryptopunks). Its goal is to act as a representation of the market capitalisation of the Top 10 NFT Art collections traded on the OpenSea marketplace, which consolidates about 90% of all the NFT trading volume. The Digital Art Market Tracker Fund is made investible through an investment in Digital Assets Investment AG.

Index calculation process:

The index methodology is based on a passive approach with defined index rules. Every 3 months the index is rebalanced based on the latest markets development.

The index committee meets quarterly to review the portfolio and resolve investment decisions that require manual intervention. It consists of experts in the person of the CEO of Janteq Ecosystems AG and the founder of ArtyNFT possessing the relevant know-how in the NFT and financial market.

The market capitalisation for each NFT collection is calculated by taking the current floor price or if not available an average of the 10 latest transactions multiplied by the total number of collection items. The data base and primary source for purchases is the OpenSea marketplace.

The 10 largest collections are selected and weighted based on their market capitalisation.

To avoid concentration risk to specific developers and projects, the index takes a maximum exposure of 20% for a single collection and a maximum of 3 collections from a single developer company. In case certain collection have a share above the limit, the excesses get redistributed to other collections throughout the rebalancing.

Corresponding to the available funds, NFTs are then purchased from these collections based on the respective weightings. The remaining balance is kept as cash reserve.

NFTs from collections that drop out of the Top 10 are sold and the proceeds reinvested into the new collections.

The current index valuation gets recorded and published to the investors.

A portfolio based on current market conditions would contain the following collections: