VanEck’s MV Index Solutions, in partnership with London-based digital asset data provider CryptoCompare, has launched a series of digital assets indices designed to most accurately track the performance of the otherwise fragmented global digital assets markets.
The new partnership writes that the MVIS CryptoCompare Indices are the first to meet investment industry benchmarking standards by providing a public rulebook for fork treatments and other events, industry-wide data distribution, proper identifiers and further standard index governance requirements that are expected from a regulated, unaffiliated, major benchmark provider.
MVIS CryptoCompare Indices utilise digital asset pricing methodology incorporating pricing and trade data from over fifty major digital asset exchanges around the world. Prices are weighted by volume on 24/7 basis in order to facilitate global price discovery and best reflect the most accurate state of the digital assets markets. An index capping methodology for multi-component indexes promotes diversification and increases exposure to emerging digital assets.
The innovative series includes 12 single digital asset indices, including Bitcoin, Ether and Ripple and the following four multiple digital asset indices:
MVIS CryptoCompare Digital Assets 25 Index (MVDA25)
MVIS CryptoCompare Digital Assets 10 Index (MVDA10)
MVIS CryptoCompare Digital Assets 5 Index (MVDA5)
MVIS CryptoCompare Digital Assets 100 Index (MVDA100; selection benchmark index).
The partnership writes that the indices are robust and transparent benchmarks that can potentially be used for active and passive portfolio strategies, futures contracts and other derivatives as well as further standard investment instruments.
“Digital assets are a dynamic area that merits attention, especially by professional investors,” says Thomas Kettner, Managing Director at MVIS. “Although not without risks, digital assets have the potential to integrate into the broad economy and become an investable asset class in their own right. MVIS is at the forefront of these market developments.”
“We are excited to partner with MVIS in offering next-generation index strategies,” says Charles Hayter, CEO and Co-Founder at CryptoCompare. “This alliance allows us to bring digital market innovation and expertise to the asset management industry.”
Gabor Gurbacs, Director of Digital Asset Strategy at VanEck, says: “VanEck (MVIS’ parent company) is committed to support long-term, structural innovation in the asset management industry. High quality digital asset indices are among the first building blocks in a series of market structure oriented digital asset initiatives.”