- By Pierre-Alexandre
August 12th, 2019
Crypto Indexes are getting a growing attention from the market as an increasing number of crypto investors and traders across the globe are looking for reliable insights and crypto market benchmarks. Here’s everything you need to know about crypto indexes:
Just like the stock indexes aim to provide real-time accurate information of the stock market movements, similarly, a crypto index help professional investors to accurately track the wide cryptocurrency marketplace.
Crypto Indexes help investors to fetch crucial data and information by segmenting the market into different sectors and categories. The crypto indexes provide accurate market information by aggregating real-time data from multiple cryptocurrency exchanges.
While deciding which coins should be included in a cryptocurrency index, there are a number of factors in play. For a given blockchain and its native cryptocurrency, there are some important factors like governance capabilities, ability to attain speed and scalability, the ability or flexibility to improve code, scaling interoperability, energy efficiency, etc.
Now if we look into what purpose does the crypto index serves, we first need to have a brief understanding of the crypto market. Over the last decade, crypto markets have remained largely volatile and continue to do so even today. Moreover, crypto pricing across exchanges vary a bit due to their different sources of data collections.
This is why crypto investors and traders need a good price referencing platform, which is the crypto index. The crypto index platforms provide accurate pricing information to estimate the performance of the crypto market and help crypto traders to make data driven decisions when investing in the crypto market.
Some of the Top Crypto Index Available In The Market
- Weiss Crypto Ratings: Weiss Is one of the Most popular Crypto Index platforms currently available in the market. Weiss provides different crypto indexes like the Top 50 Index including and excluding Bitcoin, Weiss Small-Cap/Mid-Cap/Large-Cap crypto index. As stated, Weiss uses different metrics to properly segment the crypto marketplace into different sectors and categories.
Source: Weiss Crypto Ratings
- Bloomberg Galaxy Crypto Index: The BGCI tracks the top 10 digital currencies by market cap. The BGCI Index tracks two major sectors: 1. Digital Currencies and Store-of-Value tokens like Bitcoin, Ethereum, Ripple, Litecoin, etc. 2. Smart Contract Platforms and dApp ecosystems like EOS, Ethereum, etc. You can read more about the BGCI Index here.
- Bitwise Crypto Index: Bitwise was the first one to launch a crypto index fund in the digital currency market back in 2017. Dubbed as the Bitwise 10 Private Index Fund, it provides single asset funds that are liquid, low-cost and secure.
Bitwise’s Crypto Index Fund provides all the necessary information as required by institutional investors. Read more about the Bitwise Crypto Index Fund here.
- Shitcoin Futures Index: This oddly sounded crypto index fund is run by the crypto derivatives platform FTX. Dubbed as the Shitcoin Index Perpetual Futures, the fund tracks 58 low market cap crypto tokens. You can get all the details of the SHIT-PERP crypto Index here.
- RAD 30: The RAD 30 crypto index fund tracks 30 different digital assets. However, instead of tracking digital currencies based on their market cap, the RAD 30 tracks crypto assets catering to different industry sectors like E-Commerce, Distributed Cloud Computing, Advertising, Healthcare, Financial Services, Energy, Social and Digital Media Networks, etc.
With the increasing penetration of institutional investors and the need of accurate information on the crypto market, the demand for crypto index platforms is raising.