Who can use this feature?
The Luno Large Cap Bundle is currently only available to customers in South Africa, Malaysia, Nigeria, and Indonesia.
To take the guesswork out of investing in multiple crypto assets, we’ve teamed up with our trusted partner CoinDesk to provide the Luno Large Cap bundle - a collection of the largest and most established cryptocurrencies, all accessible with one simple purchase.
Ready to play the long game? Let’s get into the nitty-gritty!
Which coins are included in the bundle?
The bundle currently contains the following coins weighted according to their market capitalisation:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Solana (SOL)
- Binance Coin (BNB) *BNB is not available to Luno Malaysia customers at this time
Note
These coins could change after each quarterly rebalancing event.
So, how does it work?
CoinDesk tracks the market cap performance of all the biggest cryptocurrencies. In case you’re unfamiliar with the term, market cap refers to the price of a cryptocurrency multiplied by its supply. For example, if a crypto asset’s price is $10 and there are a million of those crypto assets in circulation, then that coin’s market cap is $10 million.
The crypto assets that have the highest market cap – and that meet CoinDesk’s careful selection criteria – are then included in the CoinDesk 5 Index (CD5). The Luno Large Cap bundle automatically keeps track of this index, so Luno customers can easily invest in a basket of the most valuable and established cryptocurrencies on the market.
CoinDesk’s smart algorithm analyses the performance of different cryptocurrencies as their market caps move up or down in value. To reflect these changes in the market, your Luno Large Cap bundle will be automatically rebalanced once every quarter.
Rebalancing adjusts the proportion of each cryptocurrency in your bundle to realign it with the latest market cap data. So the cryptocurrency with the highest market cap that quarter will make up the largest portion of your bundle, the second-highest will have the second-largest portion, and so on. If a previously excluded coin rises to become a top performer, it’ll be added to your bundle during the quarterly rebalance without you needing to lift a finger.
Tip
Learn more about how bundle rebalancing works.
What exactly is the CoinDesk 5 Index (CD5)?
The CoinDesk 5 Index is a benchmark designed to track the performance of the largest and most liquid digital assets. It is derived from the Digital Asset Classification Standard (DACS). DACS defines and organises the industries of digital assets into categories, allowing each of the top 500 assets (by market cap) to be assigned to a relevant category based on its use case and technology.
CoinDesk ranks the market caps of those digital assets in the DACS list, then they apply various criteria to whittle down the list to focus on the top 5 largest digital assets selected from the CoinDesk 20 Index. These top coins are what make up the CoinDesk 5 Index (CD5) – and, in turn, they’ll be included in your Luno Large Cap bundle investment.
How are the crypto assets in my bundle chosen?
To be considered as a potential candidate for selection, a cryptocurrency needs to meet all of the following eligibility criteria:
- It must be ranked in the top 200 in the latest published DACS report
- Custodian services (i.e. secure storage services) for the coin must be available from Coinbase Custody, and the coin must be accessible to investors
- It must not be a stablecoin or a meme coin
- It must have been listed on an Eligible Exchange for a minimum of 30 days before the quarterly rebalancing date
All crypto assets that meet these criteria are then ranked by market cap. The top 20 form the Selection Universe – basically a shortlist of semi-finalists in the coin selection race.
What follows is the constituent selection process, which determines which handful of crypto assets from the top 20 will be included in the bundle. This process uses a formula which takes into account several factors, including each coin’s market cap, its price over the past 30 days, and its liquidity. Crypto assets that were traded on fewer than three eligible exchanges are also removed from the running at this point.
The top 5-10 cryptocurrencies that emerge from this process are then weighted to determine how much of each coin should be included in the bundle. Their weights are calculated as a percentage of the total market cap of all the included crypto assets. For example, if all the crypto assets’ market caps added together total $600 billion, and Bitcoin’s market cap is $300 billion, then Bitcoin will make up 50% of the bundle.
This selection and weighting process takes place every quarter to rebalance your bundle and keep it up to date with how the market has changed.
The result of all this? You own a carefully curated bundle of some of the largest, most well-established cryptocurrencies, and as the crypto market evolves, your bundle will automatically evolve with it.
Tip
To gain a deeper understanding of the DLCS methodology, have a look at the CoinDesk 5 Index (CD5).
Frequently asked questions
What are the fees?
A buy, tracking, top-up, and sell fee are charged for bundles. The rebalancing fee is paid quarterly, while the rest are paid at the point of sale.
Note
Read this article for a breakdown of the fees that are charged for bundles.
How much or how little am I able to buy or sell?
The transaction limits in this table apply when you buy, top up, or sell a portion of your bundle.
| Country | Minimum | Maximum |
| South Africa | R100 | R1,500,000 |
| Malaysia | RM25 | RM365,000 |
| Nigeria | ₦2,500 | ₦3,600,000 |
| Indonesia | Rp100,000 | Rp120,000,000 |
Can I sell or send individual crypto assets in my bundle?
If your account is verified in Malaysia, you have the option to unbundle individual cryptocurrencies from your bundle. This will transfer that cryptocurrency out of the bundle into its standard crypto wallet. Unbundling is not currently available in other countries.
Regardless of your country, you can’t sell an individual coin for fiat currency from your bundle, and you can’t send or receive crypto using your bundle.
Are there any restrictions on when I can sell my bundle?
Yes, just one: you’ll not be able to sell your bundle for a brief 1.5-hour window during each quarterly rebalancing event. These will take place in January, April, July, and October.
This means that bundle trading will be paused on the second business day of the following months at these times:
- January: 7:45 PM - 9:15 PM (UTC)
- April, July, October: 6:45 PM - 8:15 PM (UTC)
What is rebalancing?
As crypto assets in your bundle drop or increase in value, the bundle will automatically rebalance itself every quarter by allocating more money to higher-performing crypto assets and less money to lower-performing ones, if needed. Read more about bundle rebalancing and how it works.
When does rebalancing take place?
Rebalancing takes place on the second business day of January, April, July, and October.
Can I track the performance of my bundle?
Yes, you can. You’ll be able to see how your bundle’s doing from your Portfolio screen by navigating to YOUR INVESTMENTS, scrolling down to Bundles, and then selecting Luno Large Cap.
Tip
Check out this article to learn how to track your bundle’s performance.
Are there tax implications?
Yes. Buying the underlying crypto assets, rebalancing, and reconstitution or selling all or part of the bundle will trigger a tax event.
Note
We recommend that you consult with your personal tax advisor on the potential tax implications of investing in the Luno Large Cap bundle.