Mudrex launches DeFi mutual fund model for retail investors

Cryptocurrency asset management firm Mudrex has announced the launch of its new Coin Sets investment vehicle.

The new offering allows investors to diversify their asset portfolio across a range of high-performing decentralized finance, or DeFi, assets, as well as nonfungible tokens, or NFTs. 

The niche financial model fosters the distribution of risk exposure in what is often considered a volatile marketplace, allowing investors to bet on the value proposition of an entire sector, rather than the individual potential of a single asset. The basket of assets is also rebalanced on a monthly basis to recalculate the risk and opportunity for investors. 

This is reportedly the first time a product of this kind has been launched to the retail marketplace, as opposed to mutual funds with similar design and functionalities that exclusively target high-net-worth clientele and institutional-grade investors.

Launched in January 2018, the San Francisco-based organization is experiencing a moment of expansion in registering over 40,000 users and has in excess of $15 million in assets under management.

In April 2020, the firm launched a digital asset trading platform titled Mudrex Invest, designed to provide automated expert trading services to regular individuals.

On Aug. 10, it was announced that the firm had received a seed funding raise of $2.5 million orchestrated by Nexus Venture Partners, with additional participation from the likes of Village Global and Kunal Shah, among others.

It is expected that the recent acquisition of funds will contribute to expanding the firm's operational workforce, in addition to the deployment of further products and services.

Related: Portfolio rebalancing through DeFi must be simplified to see adoption

Cointelegraph spoke to the co-founder of Mudrex, Edul Patel, who commented on the identified target audience for the launch of the new product:

The demand for a simple to invest product like Coinsets is so universal that we have a lot of interest from across demographics. The product is especially attractive to new entrants into crypto who are quickly overwhelmed with the information overload in the asset class.

In addition, Patel revealed an innovative aspect of the Coin Set product that encourages a self-assembling approach to portfolio creation, as well as reporting that one of India's largest portfolio management systems, MintingM, has utilized the model for their flagship product xMINT.

"One very interesting feature that we have enabled is letting pro traders/creators and influencers build their own Coin Sets and distribute it to their own communities to unlock wealth creation for theme."