The performance information covers the first three quarters of 2022, but the individual coins that make up the indices have not yet been made public.
According to a press statement posted on its website on November 29, FTSE Russell, the company that created the FTSE100 stock index, has introduced a number of indices with digital assets as their main components. Together with Digital Asset Research, the series was created. A division of the London Stock Exchange is FTSE Russell.
Throughout the history of the stock market, indices have been employed to monitor specific market segments. Prior to 2021, though, there weren’t many built of cryptocurrencies.
It appears that the FTSE Digital Asset Index series is the first to be released by a British company. It joins the group of cryptocurrency indices that have been released by American and German businesses since the beginning of 2021, including the CMC Crypto 200 Index series by Soloactive, the S&P Cryptocurrency Index series, and the Nasdaq Crypto Index.
The new series includes four indices that combine coins from various market cap sizes, making a total of eight indices, one for each of the four market cap sizes: large cap, mid cap, small cap, and micro cap. Although the company has not yet disclosed the constituents for each index, it has published a fact sheet for each one that includes performance information for the first three quarters of 2022.
Arne Staal, CEO of FTSE Russell, argued in the press release that the new indices will aid in bringing transparency to the cryptocurrency market, saying:
“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”
The new indices, according to the company’s website, use a defined set of 21 criteria to identify the organizations that can be relied upon to provide accurate pricing data. Once a group of institutions has been chosen, the coins included in each index and the index’s overall performance are determined using the price information from these institutions.
