Grayscale Investments has unveiled a framework for categorizing the digital asset ecosystem and has partnered with FTSE Russell to introduce a suite of sector-focused crypto indices.
Michael Sonnenshein, CEO of Grayscale Investments.
The FTSE Grayscale Crypto Sector Index series consists of five rules-based indices that aim to capture the investable crypto market articulated by Grayscale’s framework.
The five Crypto Sector Indices introduced are Currencies, Smart Contract Platforms, Financials, Consumer & Culture, and Utilities & Services. Collectively, they cover over 150 protocols and are reassessed quarterly to remain aligned with the dynamic nature of the crypto asset class.
Crypto assets must satisfy market value and liquidity criteria to be eligible for inclusion within any of the indices. Each index weights its selected digital assets by the square root of the tokens’ market values.
The FTSE Grayscale Currencies Crypto Sector Index includes crypto assets that serve at least one of three fundamental roles – as a medium of exchange, store of value, and unit of account. The leading assets in the index include Bitcoin, Ripple, Litecoin, and Bitcoin Cash.
The FTSE Grayscale Smart Contract Platforms Crypto Sector Index includes crypto assets that serve as the baseline platforms upon which self-executing contracts are developed and deployed. The leading assets in the index include Ethereum, Cardano, Solana, and TRON.
The FTSE Grayscale Financials Crypto Sector Index includes crypto assets that seek to deliver financial transactions and services. The leading assets in the index include Uniswap, AAVE, Maker, and Compound.
The FTSE Grayscale Consumer & Culture Crypto Sector Index includes crypto assets that support consumption-centric activities across a variety of goods and services. The leading assets in the index include ApeCoin, SAND, ImmutableX, and Decentraland.
The FTSE Grayscale Utilities & Services Crypto Sector Index includes crypto assets that aim to deliver practical and enterprise-level applications and functionalities. The leading assets in the index include Chainlink, Lido, Filecoin, and Helium.
Michael Sonnenshein, CEO of Grayscale Investments, commented: “Investors have increasingly expressed interest in diversifying beyond crypto’s largest assets, Bitcoin and Ethereum, and many look to Grayscale to better understand this robust, evolving asset class. Grayscale Crypto Sectors formalizes our specialized view of the crypto landscape, and we are thrilled to partner with FTSE Russell to make this framework actionable in the form of indices. Together, our brands will bring the rigor of traditional finance to crypto.”
Fiona Bassett, CEO of FTSE Russell, added: “Trust in financial markets is earned through transparency and governance. With our shared expertise, we have created a sector-defining approach to capture innovation that will enable improved decision-making in this growing asset class. This fundamental construct offers critical insight to help investors make decisions with clarity and conviction.”