The index fund is survives because it bets on winners. The investment is made without research or knowledge outside of the programmatic buying and maintaining of proper balances. The modern Dow Jones Industrial Average contains few of its original holdings. Many of those older companies fell apart or lost a competitive edge. And many small businesses grew to take their position. Over the course of many years, a specific holder can make a considerable profit even if 50% of the companies ever in the index go bankrupt!
The passive index is an investment in an idea – that stability would come from diversification of risk and that long term value would accrue to winners in a competitive and free market. When the exchange traded fund (ETF) was introduced to the American public it was a historic development in global finance - increasing inclusion in the financial system. It is arguably the most effective way for large-scale uninformed investors to participate in marketplaces with informed traders. The ideal application of these principles (stability, value creation, and open exchange) to the cryptoasset investment space will be our Pole Star. Twentix Public Launch: June 2nd 2018.