Indexing Is Coming to Crypto Funds Via Decentralized Exchanges

Index funds have long been pitched as a low-risk and inexpensive way to invest. Now they’re coming to the rollicking world of cryptocurrencies, but with plenty of caveats as well as expectations for eye-popping returns.

In a nod to the decentralized aspirations of crypto, the handful of funds offered -- which go by names such as Index Coop, Indexed Finance, PieDAO, and BasketDAO -- are run by DAOs, the decentralized autonomous organizations that are governed by software programs and user communities.

Over the past year, these community-run index funds have raised hundreds of millions. Launched about a year ...