SharesPost Token Index posts 16.5 percent monthly gain
May 15, 2019 | Blog

SharesPost Token Index posts 16.5 percent monthly gain

Reflecting the general valuation appreciation in crypto markets this year, the SharesPost Token Index has more than doubled in 2019, rising 141 percent from January 1 through April 30. The Index reached the highest level since August 2018 on April 20, at a value of 74.89 and later settled at 66.66, marking a welcomed 16.5 percent gain over the month. Index benchmarks, Bitcoin (BTC) and Ethereum (ETH), also experienced appreciated monthly gains at 29 percent and 16 percent respectively.

April Constituent Performance vs. Benchmarks

Top Performers

Basic Attention Token (BAT) was the strongest performing Index constituent over the month of April, followed closely by Augur (REP). Speculation likely drove both of the April “winners.” BAT recently partnered with the Brave Browser to better reward browser users for their online advertisement engagement in pursuit of further optimizing the web-based ad ecosystem. Augur announced in April that they would be upgrading their REP token from the ERC-20 protocol to ERC-777, likely driving interest in the token. We must note the latter protocol is still in the development phase with blockchain developers contemplating the specifics.

Bottom Performers

Ziliqua (ZIL) and 0x (ZRX) tied for the worst performing index constituent over the course of April. Both tokens saw a valuation decrease of about 16 percent. LINK, OMG, and AE all had double digit drops during the month. Crypto market participants are likely unsurprised by this volatility. By historical standards, the aforementioned decreases are more modest than those seen in November 2018, where ZIL, ZRX, OMG, and AE all lost nearly half their value in a month’s time. Perhaps crypto markets are rebounding out of the Crypto Winter of 2018.

Constituent Performance Since Inception vs. Benchmarks

Market Commentary

Towards the end of April, Bloomberg reported that Fidelity will be expanding its Bitcoin trading capabilities, targeting institutional clients before rolling it out to retail accounts. If this development is well accepted by big-account clients, crypto could be on its way towards a higher collective valuation. From the many blockchain conferences and meetups SharesPost Research has attended in the last year, general sentiment has focused on the size of this asset class as being the most impeding factor. Institutional investors are concerned with liquidity risk and a larger pool could help mitigate this concern. We will continue to monitor regulatory and institutional catalysts in this fast-moving industry.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.