It will be interesting to see whether this gains any traction once it hits the exchanges. I'm linking to a very interesting article which suggests that a cryptocurrency index fund actually underperforms Bitcoin over the long term, because even though alts go up more in bull markets, they go down more in bear markets while Bitcoin holds its value.
http://woobull.com/crypto-currency-index-funds-the-simulations-have-surprising-results/
RE: CRYPTO20 in a Nutshell - Writeup