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The world of alternative investments is at a crossroads. As markets defy expectations and liquidity concerns take centre stage, investors find themselves forced to rethink how they deploy capital in an increasingly complex environment.
Bitcoin index launch marks another step to the mainstream
The London Stock Exchange Group and its FTSE Russell subsidiary have partnered with Digital Asset Research, provider of cryptocurrency pricing and market data, to announce the launch of the FTSE Russell Digital Asset Index Series.
It marks another step into the mainstream for cryptocurrency, the further professionalisation of an industry sector that has remained somewhat “cottage.”
The series consists of three indices that are designed to give investors a means to evaluate digital asset investments and prices. The three comprise:
- FTSE Bitcoin Index
- FTSE Ethereum Index
- FTSE Cardano Index
The three new indices are a response to surging investor demand and the need to “accurately capture the performance of three digital assets,” FTSE says.
Digital Asset Research will assess the quality of pricing data, qualify pricing sources, calculate the FTSE DAR Digital Asset Prices and supply FTSE Russell with price feeds and advice on the eligibility of assets in the FTSE Digital Asset Index Series.
Institutional interest in digital assets is growing. For that reason alone, the delivery of such accurate crypto data was required. And so, proper tools and methodologies have been developed to facilitate clear performance measures in these assets, bridging the gap between “crypto-native” providers and the traditional investment community.
The main positive in having an index is a reliable price. Traditionally, this sector has lacked both proper pricing and a pricing structure that can be trusted. The FTSE DAR Reference Price will eliminate any trust concerns with its robust exchange-vetting methodology, set up to remove unverifiable transactions from the data set.
In any market, reliable and accurate price data is crucial to better research and analysis. With regulatory acceptance of cryptocurrency, it makes sense that this marketplace be provided with coverage on all digital assets in which pricing is possible.
Cryptocurrencies trade 24/7 and will require new measurement approaches. The files are delivered on the fifteenth minute of every hour of every day.
Kristen Mierzwa, FTSE Russell’s managing director, says: “FTSE Russell’s new digital asset indexes will provide customers with a comprehensive, high-quality, data source for their investment analysis and product development needs.”
