We've done about 100M in transactions. Some of the indices we built were a top 20 by market cap (10% cap), top 30 by squared root market cap.
If you guys want to check it out: https://www.hodlbot.io
- Does re-balancing create a taxable event? If so, given a bunch of these cryptos trade in BTC pairs, do you generate all the documents necessary to file taxes?
- What do you feel about the top 10 currencies changing so rapidly over time? I think every month (or maybe two) the top 10 list significantly changes. Doesn't that accumulate a lot of trading activity and fees? Given the volatility, is there any point to holding the top 10 instead of just holding solid / consistent cryptos like BTC and ETH?
if the rebalancing involves selling something, then yes you have to pay capital gains on it. The only way to avoid this is wrapping your trading activity in a ETF.