Mantle and Securitize Launch $400M Crypto Index Fund

Mantle and Securitize have jointly announced the launch of the Mantle Index Four (MI4) Fund, a $400 million tokenized crypto index fund. The fund is structured as a British Virgin Islands Limited Partnership and is managed by Mantle Guard Limited. It aims to bridge the gap between traditional institutional investment structures and decentralized finance.

The MI4 Fund offers investors exposure to a curated mix of major crypto assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USD-pegged stable-value tokens. The fund integrates on-chain yield strategies, making it an attractive option for investors seeking passive income without the complexities of direct custody or asset management responsibilities. Mantle Treasury has committed up to $400 million as anchor capital for the fund.

Ask Aime: What impact does Mantle Index Four's $400m tokenized crypto index fund have on traditional investment structures and decentralized finance?

Securitize is responsible for the tokenization of investor shares on the Mantle Network. The assets within the fund will be held using institutional infrastructure, including Fireblocks and multisig controls, ensuring a high level of security and compliance. The fund rebalances quarterly and incorporates staking mechanisms like Mantle’s mETH and Bybit’s bbSOL to generate yield within a compliant framework. Tokenized shares can be transferred between approved participants and may be used as collateral under specific conditions.

Timothy Chen, Global Head of Strategy at Mantle, highlighted that the fund's basket of major cryptocurrencies aims to capture all capital on-chain looking for smart beta with income. He described it as a "set-it-and-forget-it" solution for institutions, eliminating the complexities of direct custody. Carlos Domingo, CEO of Securitize, added that the fund mirrors the best of traditional finance while delivering the full potential of tokenized securities.

MI4 is designed to resemble traditional index funds, with embedded yield and transferability, making it suitable for institutional use cases. The rollout of the fund is set to begin in the second quarter of 2025, with further integrations planned across the broader asset management ecosystem. This move reflects a broader trend in the industry, where institutional funds are increasingly designing crypto products to resemble the structure and mechanics of traditional index funds, employing passive strategies, periodic rebalancing, and regulated wrappers to bring digital assets into portfolios already built around familiar benchmarks.

As tokenization spreads across fund structures and custody models, the gap between traditional finance and blockchain is closing. This is not through disruption but through replication, as firms adapt existing financial tools to bring digital assets into mainstream portfolios. The MI4 Fund represents a significant step in this direction, offering a compliant and institutional-grade crypto product that leverages the benefits of blockchain technology while maintaining the familiarity and reliability of traditional financial instruments.