“The Ether Trend Indicator is designed to detect the presence, direction, and strength of trends in the price of ether. We built it to drive client-developed outcome-oriented ETH strategies that help deliver a smoother ride,” said Andy Baehr, CFA, Managing Director at CoinDesk Indices. "We are excited to collaborate with Index Coop for cdETI, the first on-chain ETI-driven product.”
By tokenising ETI, cdETI aims to capitalise on ETH’s price momentum without the need for constant market monitoring and manual trading.
In this article, you’ll learn:
Individuals are notoriously bad at timing the market. cdETI offers holders an automated way to gain exposure to ETH and ETH price momentum; the token aims to capture gains during bull phases and preserve capital during bear phases.
By holding cdETI, users can benefit from an automated and data-driven strategy that takes the guesswork out of maintaining exposure to ETH and ETH price momentum.
Backtest data shows cdETI potentially outperforming ETH over the last two years.
And, perhaps most interesting for certain types of buyers, cdETI aims to reduce volatility for holders compared to holding ETH.
A trend indicator is a set of dynamic signals designed to convey the presence, direction and strength of momentum in the price of a digital asset.
CoinDesk Indices’ Ether Trend Indicator (ETI) provides a snapshot of Ethereum's price momentum on a daily basis. It compares short-term and long-term price averages to determine whether the price is in an uptrend, downtrend, or staying steady. The ETI uses price data from the past 180 days to calculate these averages. It then breaks down this analysis into four pairs of short-term and long-term averages, comparing them to identify the price trend.
The result is a daily value of -1, -0.5, 0, 0.5, or 1. A value of 1 indicates a significant uptrend, -1 indicates a significant downtrend, and values in between show varying degrees of upward or downward trends, with 0 indicating no clear trend. This simplifies complex price data into an easy-to-understand indicator, helping individuals gauge Ethereum's price momentum at a glance.
cdETI, an ERC20 token accessible to anyone (in compliance with our Terms of Service*), enables holders to gain exposure to ETH price momentum with guidance from CoinDesk Indices’ Ether Trend Indicator for the first time.
*cdETI is not available to Restricted Persons, as defined in our Terms of Service, which includes US persons.
cdETI allocates to USDC and/or ETH according to values from ETI per the following methodology:
The Index Coop CoinDesk ETH Trend Index will have an annual fee of 1.50% and a 0.10% issuance and redemption fee.
cdETI is available through Flash Mint via the Index Coop App. Flash Mint facilitates cost-effective trades by minting new units from cdETI’s underlying product components of USDC and WETH. Swap won’t be available via DEX as liquidity will not be provided.
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You shall not purchase or otherwise acquire any of our token products if you are: a citizen, resident (tax or otherwise), green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (a “U.S. Person”), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. Person, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized). You shall not resell or otherwise transfer any of our token products to any Restricted Person. The transfer or resale of any of our token products to any Restricted Person is not permitted. Click here to view the list of Tokens Restricted for Restricted Persons. You shall read the Terms of Service and use our Website in compliance with the Terms of Service.