Staking Rewards, the industry leader in everything crypto staking, has announced the SR20, an S&P 500 type index that will allow investors to profit from the growth of the staking industry, without having any technical knowledge.
In their announcement, Staking Rewards said that the new index will track the Top 20 Proof-Of-Stake crypto assets by market cap and total staked value.
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Making Crypto Staking More Accessible
Staking Rewards recognized that staking still has a way to go before it becomes mainstream.
Technical knowledge, hardware requirements and the need for active oversight were identified as some of the top reasons keeping a whopping 67%, or two thirds of the crypto staking market cap on the sidelines.
That means that in a market currently worth just over $840 Billion Dollars, only $275 Billion are being staked across all assets. And as time goes by, those who choose not to stake their crypto assets are slowly being diluted out of their position by missing out on staking rewards.
By allowing more people to stake their crypto assets, not only is Staking Rewards helping secure PoS blockchains and move the industry forward, but its also helping investors grow their portfolios.
Buying The SR20 vs. Just Buying Crypto
By buying the SR20, an investor who believes in the potential of the PoS industry can actively participate and get fantastic returns without the hassle of figuring out the technical aspects of staking. So far is clear.
If staking then becomes easily accessible to everyone, the real question becomes – “Is it better than just investing in a specific crypto coin or a variety of top coins?”
To answer that, in their recent Staking Ecosystem Report, Staking Rewards demonstrated how the PoS market shot up a whopping 1,550% in the last year, outperforming the crypto market by no less than 3.35x.
If we break down the numbers, the crypto market as a whole has been up by 245% year-to-date, while the SR20 delivered a 760% increase, or 821% if you factor in staking profits.
In comparison, the DeFi Pulse, another popular index, delivered returns of 259% year-to-date, better than the overall crypto market, but still far behind the SR20.
It’s true that expecting these kinds of returns every year is somewhat unrealistic, but in the short to medium term, it could be an investment opportunity to consider.
Buying An Index Fund Is A Safer Bet
Another benefit that’s apparent to anyone who ever invested in an index fund, is that by buying an aggregate of the top 20 staking assets, an investor takes on less risk than investing in a single crypto asset that might severely underperform or decrease in value for whatever reason.
Many of the world’s leading stock investors, including the famed Benjamin Graham, showed how in a long term investment strategy (10-20 years), simply buying the S&P 500 index always delivered better returns than cherry picking stocks in almost all but the most outlier cases. It would be logical to assume that a similar scenario is likely to happen in the crypto staking market as well.
How To Buy The SR20
This much anticipated product is still being worked on. To be among the first to know about the future launch of the SR20, join the waitlist here.