London’s FTSE Russell Launches Cryptocurrency Indices

London’s FTSE Russell Launches Cryptocurrency Indices

  • The creator of the FTSE100 unveiled the new global cryptocurrency indices this week.
  • These information and data tools help improve the performance measurement of digital assets.
  • The company has not disclosed which digital currencies will make up the indices but offers performance data for them this year.

FTSE Russell, a subsidiary of the London Stock Exchange Group, has launched a series of indices associated with global digital assets. The company reported this in a press release posted on its website on Tuesday, November 29.

The creator of the FTSE100 stock index explained that the eight indices were prepared in collaboration with the data firm Digital Asset Research. It further noted that this is the second series of FTSE Russell indices based on the FTSE.

This is the first time that indices associated with cryptocurrencies and other digital assets have been issued in the UK. Prior to the FTSE Digital Asset Index series, other companies in the US and Germany had already launched other indices for digital currencies in 2021. These included the S&P Cryptocurrency Index series, Soloactive’s CMC Crypto 200 Index, and the Nasdaq Crypto Index.

Cryptocurrency Composite Indices

The new indices range from large-cap coins to micro-cap coins such as the FTSE Digital Asset Index, FTSE Digital Asset All Cap Index, FTSE Digital Asset Total Cap Index, and FTSE Digital Asset Large Cap Index.

Likewise, the global indices FTSE Digital Asset Mid Cap Index, FTSE Digital Asset SMID Cap Index, FTSE Digital Asset Small Cap Index, and FTSE Digital Asset Micro Cap Index appear.

The currencies that will make up the various indices have not yet been revealed. However, the company published a fact sheet containing performance data for each of them for the first quarter of 2022.

"FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework," said FTSE Russell CEO Arne Staal.

It added that such a framework will be “underpinned by strong governance and comprehensive data to meet the needs of investors, both where they are now and as they prepare for change in this market.”

As read on the company’s website, the digital asset indices are modular and are structured “taking into account the flexibility of investors and the ability to customize.”

On the Flipside

  • After the institutions are chosen and their price data is obtained, this data is used to determine which index each currency is in and what the overall performance of each of them is.

Why You Should Care

Indices are used in the stock market to track the prices of assets available. It wasn’t until early last year that cryptocurrency-linked indices began to be published.

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