FTSE Russel, the company behind the London Stock Exchange’s FTSE 100 stock index, has revealed a set of standards for the crypto asset market.
The FTSE Global Digital Asset Index series includes eight gauges ranging from large- and mid-cap assets to micro-caps. According to a statement from FTSE Russell, the indices, built with Digital Asset Research, will oversee information from hundreds of exchanges to represent the investable paradigm. The company revealed its intention to offer a crypto index in December, when it launched the evolution of an index covering forty-three virtual assets.
The development and adoption of the crypto space over the past few years has led to the expansion of mechanisms that assess the credibility of virtual tokens, including Bloomberg Indices, S&P Cryptocurrency Indices, and CoinDesk’s own line of market indices. The inclusion of these indices will allow them to demonstrate whether the desire for virtual assets has been heightened by the drop in the crypto-currency market over the past year and the problems faced by leading crypto-currency companies, including the exponential drop of FTX and BlockFi.
The FTSE Russell is essentially a unit of the London Stock Exchange Group, with the company’s other index being the Russell 2000.
Indices have been exploited in the stock market for a long time to understand specific regions of the market. However, there are comparatively few indices that include crypto-currencies. The FTSE Digital Asset Index sequence is the first to be published by the UK-based company. It joins a list of crypto-currency indices revealed by the U.S. and German firms since the first few months of 2021, including the series Cryptocurrency Indexthe Nasdaq Crypto Index and the CMC Crypto 200 Index series from Soloactive.
The new series includes 8 indices in total, including one for large, mid and small cap coins, as well as microcap coins, and four indices that incorporate coins of multiple market cap sizes. The company has not yet released the list of components for each index, but it has unveiled a fact sheet for each reflecting performance statistics for the first and third quarters of 2022.
Arne Staal, the managing director of FTSE Russell, said that the new index will help to include transparency in the crypto-currency sector. According to Arne Staal, FTSE has adopted a well-thought-out strategy for this mainstream investment space and has developed a rigorous and transparent skeleton, navigated by strong administration and comprehensive data to meet investor needs.