FTX crypto exchange offers index for stocks from Reddit forum „Wall Street Bets“

In addition to several securities, the crypto exchange also makes the Dogecoin tradable via the index.

After the surge in stocks such as GameStop (GME), AMC Entertainment (AMC) and the cryptocurrency Dogecoin ( DOGE ), the FTX crypto exchange launched an index fund that tracks the products in question.

The name of the index fund is Wall Street Bets, which is borrowed from the Reddit sub-forum that sparked the hype about said financial products

„We are pleased to make a basket of Wall Street Bets financial products tradable for you,“ as FTX announced in a corresponding announcement on Thursday . The index is a futures contract that expires on March 26, 2021.

FTX boss Sam Bankman-Fried told Cointelegraph that the index fund will initially only be offered for this period, but if there is sufficient demand, an extension until June is conceivable.

The WSB index runs on the FTX under the ticker WSB-0326, whereby the financial products under the abbreviations NOK, BB, AMC, GME, SLV, DOGE and FTT are included in this. The market value is calculated from the weighted average of all relevant products, as stated in the associated description .

Each financial product has a share of 16.5%, only FTT is only weighted with 1%.

The sum of 6 financial products at 16.5% each and the FTT at 1% results in a total of 100%

In the past few days the Reddit sub-forum Wall Street Bets has made headlines by jointly buying up GameStop’s stock. This, in turn, triggered what is known as a short squeeze , which drove a hedge fund that was excessively short in the security into bankruptcy. This was followed by a fundamental debate about the distribution of power in the stock market.