Mantle and Securitize Launch $400M Crypto Index Fund for Institutions

A new crypto index fund, launched by the blockchain ecosystem Mantle and the tokenization platform Securitize, aims to offer diversified exposure to crypto for institutional investors.

Backed by a $400 million anchor investment from Mantle Treasury, the product, called MI4 Fund, provides passive yield opportunities from crypto. 

It offers exposure to Bitcoin, Ether, SOL, stablecoins, and staking assets, including:

• Mantle’s mETH, 
• Bybit’s bbSOL, 
• Ethena’s USDe. 

The goal is to enhance returns through DeFi-native tools while maintaining compliance and investor protection.

According to Timothy Chen, Global Head of Strategy at Mantle, MI4 and its future variants are designed to become the crypto equivalent of the S&P 500, representing a diversified basket of top digital assets. 

Securitize CEO and co-founder Carlos Domingo highlighted that the platform enables real-time liquidity and allows fund shares to be used as on-chain collateral. He added that MI4 combines attractive yields with the structure and safeguards of traditional finance.

Institutional Demand for Digital Assets 

Institutional interest in digital assets is rising. A recent Ernst & Young (EY) survey of over 350 institutional investors revealed that: 

• 59% plan to allocate over 5% of their portfolios to crypto or related products in 2025
• 76% expect to invest in tokenized assets by 2026

EY predicts greater institutional participation in DeFi, increased holdings in altcoins, and more demand for tokenized alternative assets and stablecoins, particularly for yield and convenience.

With a new U.S. administration and more favorable crypto regulations, institutional adoption is likely to continue growing. According to EY investors in Europe will be watching how EU governing bodies respond to the optimistic developments in the US, and adjust their strategies accordingly. 

Meanwhile, the introduction of structured products like MI4, which bring familiar compliance and risk models into the blockchain space, could serve as a bridge between traditional finance and tokenized investment vehicles – further encouraging institutional involvement and helping to mainstream the adoption of digital assets.