Securitize debuts new crypto index fund with Mantle's $400 million backing

Real-world asset tokenization firm Securitize launched a new institutional crypto index fund in partnership with Mantle, which committed $400 million as the fund's anchor investment.

The Mantle Index Four (MI4) fund is said to provide exposure to top crypto assets — including BTC, ETH, SOL and U.S. dollar stablecoins — with a goal of becoming the "S&P 500 of crypto." Allocations are made reflecting market capitalization and risk, a release said.

The fund aims to further boost returns through quarterly rebalancing of funds and the integration of staking strategies from Mantle's mETH, Bybit's bbSOL and others.

"[The fund] aims to capture all capital onchain looking for smart beta with income and is a set-it-and-forget-it solution for institutions without the complexities of direct custody," said Mantle's Global Head of Strategy Timothy Chen.

With Mantle's $400 million commitment, Securitize said MI4 is the largest tokenized institutional fund over its $148 million Blockchain Capital III Digital Liquid Venture Fund (BCAP).

MI4's debut coincides with the tokenized RWA market's notable expansion in the past year, more than doubling its total on-chain value to over $21 billion from approximately $9.8 billion in April 2024, according to data from RWA.xyz.

Data indicates that tokenized private credit currently holds the largest share at $12.5 billion, followed by tokenized U.S. Treasury Debt, with approximately $6 billion.

Meanwhile, Securitize announced last week that it acquired MG Stover's digital asset-focused fund administration division to strengthen Securitize Fund Services, which helps companies to raise capital via tokenized securities.