automatic rebalancing

Automatic Rebalancing for Digital Asset ETPs


In the fast-paced world of digital assets, effective portfolio management is crucial for maximizing upside and minimizing risks. One key aspect of portfolio management is rebalancing, which ensures that the portfolio remains aligned with the desired allocation. While manual rebalancing has been the traditional method, automatic rebalancing offers multiple benefits, including reduced risk of human-induced errors. In this blog, we’ll explore the advantages of an optimised rebalancing process and how it can help to achieve better results in Exchange-Traded Products (ETP) management.

The Importance of Rebalancing

Before we dive into the advantages of automatic rebalancing, let’s first understand why rebalancing is essential. Digital asset ETPs, which represent a diversified portfolio of digital assets, require periodic adjustment to maintain their intended asset allocation. Over time, fluctuations can cause the value of different assets within the ETP to drift away from their initial proportions. Rebalancing ensures that the portfolio retains the desired allocations.

The Pitfalls of Manual Rebalancing

Historically, manual rebalancing was the standard way to keep portfolios on track. However, this approach has its drawbacks:

  1. Time-Consuming: Manual rebalancing can be a time-intensive process. Monitoring assets, calculating the necessary adjustments, and order execution can become hard to scale, especially for asset managers with multiple ETPs.

  2. Emotional Decisions: Human emotions can impact decisions. During periods of volatility, asset managers may hesitate to make necessary adjustments, potentially leading to portfolio imbalances.

  3. Data Errors: Mistakes in data input, calculation errors, or execution errors are common pitfalls when rebalancing manually. These errors can have significant consequences.


Automatic Rebalancing: A Smarter Choice

Automatic rebalancing offers a solution to the challenges of manual rebalancing. Here are some key benefits:

  1. Efficiency: Automated rebalancing software streamlines the process, saving time and effort. It continuously monitors the portfolio and makes adjustments as needed.

  2. Emotion-Free: Automated systems follow predefined requirements, without being influenced by emotions. This ensures that rebalancing decisions are made based on data and predetermined objectives.

  3. Reduced Error Risk: The risk of human-induced errors is significantly reduced with automatic rebalancing. Software can perform complex calculations accurately and execute with precision, minimizing the potential for costly mistakes.


Our Solution: Minimizing Human Errors

We understand the importance of an optimised rebalancing process for digital asset ETPs. Our software is designed to ensure that portfolios remain on track with minimal human intervention. Here’s some of the advantages of our solution:

  • Advanced Algorithms: Our software employs advanced algorithms that considering market conditions, asset performance, and portfolio goals.

  • Continuous Monitoring: Our portfolios are constantly under surveillance, allowing us to react swiftly to market changes and execute rebalancing actions as needed.

  • Error Prevention: By removing human intervention from the process, our software eliminates the risk of human-induced errors, safeguarding our portfolios.



Automatic rebalancing is the way forward for asset managers seeking to optimize their digital asset ETP portfolios. It not only saves time and reduces emotional decision-making but also minimizes the risk of costly errors.

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