This article is written by experts of AlexaBlockchain to give readers a basic understanding of Cryptocurrency Indices. This article can help our readers understand following questions related to cryptocurrency indices.
Q1. What is Cryptocurrency Indices/ Crypto Indexes/ Crypto Index ?
Q2. How does crypto index help traders?
Q3. Which are the major crypto indices?
Q4. Which are the upcoming crypto indices?
Q5. Which traditional financial companies are also involved in crypto indices?
There are thousands of cryptocurrencies/ Cryptos/ Digital Assets in the market, and these cryptos are traded on a large number of cryptocurrency exchanges.
With such a huge data points and number of sources, it can be difficult for traders to get a sense of what the digital currency market as a whole is doing. Fortunately, traders can leverage cryptocurrency indices to get a better sense of key variables like the market’s total value and which segments are experiencing the greatest volatility.
How does Crypto Index help?
By observing cryptocurrency indices, traders can zero in on what the broader market is doing, in terms of both price fluctuations and also trading activity. This saves interested parties some time and energy when they research the digital currency markets.
Top 10 Crypto Indices
1. Bloomberg Galaxy Crypto Index (BGCI)
Bloomberg and Galaxy Digital Capital Management jointly launched the Bloomberg Galaxy Crypto Index (BGCI). The index is designed to measure the performance of the largest cryptocurrencies traded in USD. The BGCI is market capitalization-weighted and includes cryptocurrencies such as Bitcoin, Ethereum, Monero, Ripple and Zcash. The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols and privacy assets.
Bloomberg Galaxy Crypto Index (BGCI) Website: https://www.bloomberg.com/professional/product/indices/bloomberg-galaxy-crypto-index/
2. Bitwise 10 Large Cap Crypto Index (BITX)
The Bitwise 10 Large Cap Crypto Index (BITX) tracks the total return of the 10 largest cryptoassets, as measured and weighted by free-float and 5-year inflation-adjusted market capitalization.
Bitwise 10 Large Cap Crypto Index (BITX) Website: https://www.bitwiseinvestments.com/indexes/Bitwise-10
3. CCi30: Crypto Currency Index 30
The CCi30 is a rules-based index designed to objectively measure the overall growth, daily and long-term movement of the blockchain sector. It does so by tracking the 30 largest cryptocurrencies by market capitalization, excluding stablecoins. It serves as a tool for passive investors to participate in this asset class, and as an industry benchmark for investment managers.
For achieving its objectives, the CCi30 has been designed with 5 main characteristics: 1. diversified; 2. replicable; 3. transparent; 4. provides in-depth coverage of the entire sector; 5. presents the best risk-adjusted performance profile possible.
The CCi30 was launched on Jan 1st, 2017. Its starting value is arbitrarily set at 100 on Jan 1st, 2015.
CCi30 Website: https://cci30.com/
4. CMC Crypto 200 Index by Solactive
The CMC Crypto 200 Index is an Index of CoinMarketCap OpCo LLC and is calculated and distributed by Solactive AG. The Index intends to track the price movements of a portfolio of the top 200 cryptocurrencies by market capitalization. The Index is a Price Return index. The Index is published in USD.
Website: https://www.solactive.com/indices/?index=DE000SLA7P09
5. CMC Crypto200 ex BTC Index by Solactive
This headline cryptocurrency index comprises the volume-weighted average price (“VWAP”) on the top 200 cryptocurrencies except for Bitcoin and stablecoins, by market capitalization, in USD. The index provides exposure to the broader cryptocurrency market by incorporating the cryptocurrencies that represent the global cryptocurrency market without the influence of Bitcoin, a cryptocurrency dominating ~51% of total market capitalization at the time of writing. Pricing data for the index is provided by CoinMarketCap, the leading cryptocurrency data provider in the world.
Website: https://www.solactive.com/Indices/?index=DE000SLA7P17
Related Post: TOP 10 Best Crypto Index List of 2020
Major announcement of Year 2020 regarding Crypto Index
S&P Dow Jones Indices to launch Crypto Index in 2021
S&P Dow Jones Indices has announced that it will launch cryptocurrency indices in 2021, making it the latest major finance company to enter the nascent asset class. The S&P DJI-branded products will use data from New York-based virtual currency company Lukka on more than 550 of the top traded coins. Read more here
Editor’s Note: if you are a crypto index publisher or planning to enter this space, and want your company to be included in this article (list of Crypto Indices), then send your request to info@alexablockchain.com