On 4/24, Mantle announced a partnership with Securitize to launch an institutional-grade cryptocurrency index fund, with a portfolio including $BTC , $ETH , $SOL , USD, and obtaining returns through interest-bearing token models (mETH, bbSOL, sUSDe).
*Mantle Treasury has committed to injecting $400 million into MI4 as cornerstone investment (approved through governance proposal)
Basic Information about Mantle Index Four
To attract traditional institutional investors, the fund's composition naturally consists of BTC, ETH, SOL, and stablecoins, which are the most accepted by traditional investors. (These three major currencies already have ETFs and ETPs in the traditional market)
It should be noted that most ETFs in the traditional market do not yet allow staking functions, meaning their products do not include token yield earnings; MI4 obtains yield earnings through mETH, bbSOL, and sUSDe, potentially providing significantly higher investment returns than traditional market ETFs.
Additionally, I find it interesting that the audit is provided by KPMG of the traditional Big Four, which should provide a higher level of compliance trust.
Yield from interest-bearing assets
The table above shows the annualized return rates of three currencies as of today (4/25), information taken from the official website.
Through MI4, traditional funds can not only profit from the appreciation of the assets in their native currency but also obtain stable annualized returns through interest-bearing assets. This may encourage some funds that prefer more aggressive investment strategies and higher yields to enter the market.
However, it should be noted that according to MI4's introduction document, the current investment allocation is: BTC (50%), ETH (28%), USD (15%), SOL (7%), and the investment allocation ratio may also affect investor decisions.
Comparison of MI4 and single asset ETFs
From the above chart, we can see that in just one year, the accumulated capital in cryptocurrency spot ETFs is quite large (market demand), and MI4 will enter the battlefield with interest-bearing assets. How will it develop in the end?
I think this depends on the promotional ability of Mantle products; companies in the cryptocurrency concept stocks should be very interested, such as strategies, miners, venture capital funds, etc.
Summary
Will MI4 be a great success? Frankly, I don't know.
However, it indeed integrates the resources of the Mantle ecosystem, providing investors with strong potential yield earnings; at least based on the performance of the BTC and ETH spot ETF market, MI4 does have certain room for development.
How much capital is willing to take on more on-chain asset risk? That remains to be verified by MI4.
Regarding the price of MNT, I believe there is no direct impact, but there are a few points that may have indirect effects:
Where will the 1% management fee be used in the future?
Will the $400M investment from Mantle Treasury return to MNT?
Will bbSOL and mETH take this opportunity to expand their territory and potentially extend benefits to the Mantle ecosystem?
Additionally, I have a question: where did FBTC go?
----
※ The above content does not constitute investment advice; users should operate according to their own risk tolerance and participate in the investment market with caution, DYOR.
※ Cover image taken from Mantle