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The growth and adoption of the crypto space over the past years has led to an expansion of mechanisms that assess the trustworthiness of virtual tokens.
The FTSE Global Digital Asset Index Series comprises eight gauges ranging from large and mid-cap assets to micro-caps. According to a statement from FTSE Russell, the index, created in conjunction with Digital Asset Research, will monitor information from hundreds of exchanges to represent the investable paradigm. The firm revealed a plan to offer a crypto index in December when it launched the development of one covering forty-three virtual assets.
The growth and adoption of the crypto space over the past years has led to an expansion of mechanisms that assess the credibility of virtual tokens, including the Bloomberg Index, the S&P cryptocurrency index, and CoinDesk’s own range of market indices. The inclusion of gauges will allow them to demonstrate whether the decline in the crypto market over the past year has increased the desire for virtual assets and the ongoing troubles faced by crypto firms including exponential declines. ftx and BlockFi.
FTSE Russell is essentially a London Stock Exchange group unit, the firm’s other indices include the Russell 2000.
Indices have long been leveraged in the stock market to understand specific sectors of the market. However, there are comparatively few indices that include cryptocurrencies. The FTSE Digital Asset Index sequence is the first to be published by the UK-based firm. This adds to the list of crypto indices that have been revealed by US and German firms since the early months of 2021, including the Cryptocurrency Index Series, the Nasdaq Crypto Index, and the CMC Crypto 200 Index Series by SoloActive.
The newly released series includes 8 indices in total, including micro-cap coins with one each for large-, mid-cap and small-caps, as well as four indices covering coins across multiple market cap sizes. The firm has not yet released a list of components for each index, but it has revealed a fact sheet for each, showing performance figures for Q1-Q3 2022.
Arne Stahl, chief executive officer of FTSE Russell, said that the novel index will assist in incorporating transparency into the crypto industry. According to Russell, the FTSE has adopted a well-thought-out strategy for this mainstream investment space and has developed a rigorous and transparent framework navigated by robust governance and exhaustive data to meet the needs of investors.
Sana is a chemistry major and a blockchain enthusiast. As a science student, his research skills enabled him to understand the intricacies of financial markets. He believes that blockchain technology has the potential to revolutionize every industry in the world.
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