Crypto indices combine multiple assets into a single, risk-managed portfolio.
Smart indices like Token Metrics use AI; others like Phuture and GMI focus on DeFi and thematic strategies.
With tokenized funds or regulated ETFs, investors can “set and forget” their crypto allocation.
As cryptocurrency markets mature in 2025, an increasing number of investor segments are looking at diversified products to balance return potential with reduced risk. Crypto indices, which can be comprised of tokens based on strategy, theme, or market capitalization, are becoming an exciting vehicle for investors to pursue passive and active strategies.
It allows investors to allocate across multiple assets in a manageable way, bypassing unintended outcomes from single-token speculation, and using some of the more advanced methods like AI selection.
Let’s take a look at the top six crypto indices this year for a smarter, more thoughtful investment strategy.
Type: Actively Managed
Technology: AI algorithm analyzing 80+ data triggers
Focus Areas: Memecoins, Real-World Assets (RWA), AI Agents, DeFi, Layer-1s
Rebalance Frequency: Weekly, based on momentum, volatility, and on-chain signals
Why It’s a Top Pick:
Token Metrics has transformed index investing by leveraging machine learning and on-chain data to inform allocation decisions. Its indices don't merely rebalance quarterly; they respond in real time. When sentiment changes or volatility increases, the AI can cut back crypto holdings or add more within specific sectors, meaning the AI responds to the best sectors of upside potential in real time.
This is particularly helpful in dynamic areas like AI tokens or meme assets. For investors looking for a level of activity management without ever managing individual coins, these indices provide a data-driven approach to manage crypto.
Type: Passive, Regulated
Structure: Traditional fund holding the top 10 coins by market cap
Why It’s a Top Pick:
BITW offers simple exposure to the largest and most liquid cryptos, Bitcoin, Ethereum, Solana, and others. It is entirely SEC-compliant and available through brokerage accounts. It is suitable for institutions and also for cautious investors. Because BITW is in a pyramid of its market caps, your exposure reflects the real-world adoption and size of the asset.
It rebalances your exposure every month, so your investment in BITW is a simple long-term play on the principal players in the cryptocurrency markets.
Type: On-chain, Passive
Composition: Leading DeFi tokens like AAVE, UNI, and CRV
Access: ERC‑20 pIndex token, fully on-chain and decentralized
Why It’s a Top Pick:
For crypto-native investors, the Phuture DeFi Index offers one-click DeFi exposure without the need to manually buy and manage each asset. It rebalances quarterly based on TVL and performance metrics, and remains composable within DeFi protocols.
This means you can use savvy DeFi tools like lending, staking, and yield products on top of the index token, amplifying returns while keeping diversification intact.
Type: Thematic & Community-Governed
Focus: Cutting-edge DeFi and protocol tokens
Governance: Managed via Index Coop and Bankless DAO
Why It’s a Top Pick:
GMI targets the bleeding edge of decentralized finance. It tracks tokens tied to new infrastructure, think cross-chain messaging, protocol-to-protocol bridges, novel tokenomics, and governance primitives. Ideal for those confident in DeFi’s next phase, GMI includes tokens like INDEX, LDO, and RPL.
Backed by DAO-governed processes, it aligns incentives with the developer and research communities pushing blockchain’s frontiers.
Type: Tokenized Index Fund
Scope: Top 20 cryptocurrencies by market cap
Access: Holders buy the ERC‑20 C20 token
Why It’s a Top Pick:
C20 is the OG of tokenized indices, offering a single-token structure that instantly grants broad, diversified exposure. The index auto-rebalances daily, reflecting market cap shifts across 20 coins.
For casual users, it's one of the simplest ways to achieve wide crypto diversification with minimal effort, all via your favorite Ethereum wallet.
Type: Passive Buckets
Variants: Top 5, Top 10, Top 25, or Top 100 by market cap
Strategy: Buy-and-hold with periodic rebalancing
Why It’s a Top Pick:
The HODL series is perfect for investors looking for long-term exposure without active rebalancing. Choose a bucket that aligns with your risk appetite: large caps only or exposure to rising mid-caps.
It’s an easy and systematic approach: invest once, and ride crypto’s long-term growth with minimal maintenance, ideal for retirement or diversified wealth strategies.
Also Read: XRP Joins Nasdaq Crypto Index: What Does It Mean for Investors?
Pick a platform: Use Token Metrics for AI-driven indices, Bitwise for regulated access, Phuture or Index Coop for on-chain strategies.
Select an index: Choose based on preferred exposure, passive caps, thematic focus, or active AI.
Set up access: Open an account or connect your wallet, depending on whether the fund is off-chain or on-chain.
Fund and execute: Deposit fiat or ERC-20 tokens and buy your index product.
Monitor periodically: AI indices may require weekly check-ins, while passive funds can be set and forgotten.
Crypto indices offer several compelling advantages:
Diversification: Reduce single-token risk by holding a basket of assets.
Professional oversight: Whether driven by AI or regulated by asset managers, indices bring discipline.
Efficiency: No need to choose or rebalance a dozen tokens manually.
Cost-effective: Compared to active trading fees, one-time or no-trading indices are budget-friendly.
Flexibility: Choose passive, thematic, or actively managed strategies depending on your preference.
As the crypto ecosystem gets increasingly complicated, indices offer a more intelligent solution to growth that couples automation, governance, and transparency. Whether you're bullish on Bitcoin, DeFi, or new emergent Web3 infrastructure, there is an index that covers your thesis.
In 2025, these instruments aren't merely convenient; they're essential tools for developing a well-formed portfolio of digital assets. You will no longer be able to navigate the crypto markets properly without having some exposure to an index.
Also Read: Crypto ETFs: Should You Invest in a Crypto Index Fund?
What is a crypto index?
A curated portfolio of multiple tokens grouped by theme, market cap, or strategy.
Are crypto indices passive or active?
They can be both, ranging from AI-managed active indices to passive cap-weighted baskets.
How to invest in crypto indices?
Choose a platform, fund your wallet or brokerage, then buy the index product.
Are they safer than picking coins individually?
Yes, indices spread risk and eliminate single-token concentration.
Can I use crypto indices within DeFi?
On-chain indices like Phuture’s can be integrated into lending, staking, and protocol strategies.