Bitwise launches three new cryptocurrency indices

Aug 20th, 2018 | By | Category: Alternatives / Multi-Asset

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Bitwise Index Services, the indexing division of Bitwise Asset Management, has launched three indices covering the mid-cap, small-cap, and total-market segments of the cryptocurrency market.

Matt Hougan, Global Head of Research for Bitwise Asset Management

Matt Hougan, Global Head of Research for Bitwise Asset Management.

The new indices complement the firm’s Bitwise 10 Large Cap Crypto Index, a market-cap-weighted index of the ten largest cryptocurrencies.

This index was previously known as the HOLD 10 but has been rebranded in line with the new indices.

The indices

The Bitwise 20 Mid Cap Crypto Index represents the performance of the 20 largest cryptocurrencies not in the Bitwise 10 Large Cap Crypto Index; the Bitwise 70 Small Cap Crypto Index consists of the next 70 cryptocurrencies; and the Bitwise 100 Total Market Crypto Index combines all three indices together.

Each index is weighted by market capitalization, using a five-year-diluted market cap and other eligibility criteria meant to address challenges of the crypto space, such as continuously changing supply, liquidity, trade volume concentration, and custody limitations.

“The methodology draws on best practices from the modern indexing of equities, bonds, commodities, and fiat currencies, and pairs them with crypto-native factors to ensure the indices are safe and replicable.”
– Matt Hougan, Global Head of Research for Bitwise Asset Management

“Our indices are built from the ground up to respond specifically to the cryptomarket,” said Matt Hougan, Global Head of Research for Bitwise Asset Management. “The methodology draws on best practices from the modern indexing of equities, bonds, commodities, and fiat currencies, and pairs them with crypto-native factors to ensure the indices are safe and replicable. We believe they are the best representation of the investable cryptoasset market in the world.”

Bitwise recently filed registration documents with the U.S. Securities and Exchange Commission for an ETF that will track the performance of its large-cap cryptocurrency index. So far the commission has rejected the listing of several Bitcoin-tracking ETFs, citing ongoing concerns over market manipulation.

Bitwise will be hoping to have more luck than previous contenders by leveraging on its management team that includes several veterans of the ETF industry, as well as the developing track record of its professionally organized cryptocurrency index fund – the Bitwise HOLD 10 Private Index Fund.

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