MV Index Solutions Debuts Family Of Digital Asset Indexes

Nov 10 2017 | 6:28pm ET

Frankfurt-based liquid alternative index provider MV Index Solutions has partnered with digital asset data provider CryptoCompare to offer a family of digital asset indices that are transparent, investable and meet industry benchmarking standards, the VanEck subsidiary has announced. 

The indices are designed to accurately track the performance of the otherwise fragmented global digital assets markets, the company said, and are the first to meet investment industry benchmarking standards by providing a public rulebook for events such as forks, industry-wide data distribution, proper identifiers and the standard index governance requirements expected from a regulated, unaffiliated, benchmark provider. 

The company’s MVIS CryptoCompare Indices utilize methodology incorporating pricing and trade data from 50+ major digital asset exchanges around the world, the company added. 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, while an index capping methodology for multi-component indexes promotes diversification and increases exposure to emerging digital assets. 

The family includes twelve single digital asset indices (e.g.: Bitcoin, Ether, Ripple) and the following four multiple digital asset indices:

  • MVIS CryptoCompare Digital Assets 25 Index     
  • MVIS CryptoCompare Digital Assets 10 Index      
  • MVIS CryptoCompare Digital Assets 5 Index       
  • MVIS CryptoCompare Digital Assets 100 Index (benchmark)   

A complete list of the new indices is available on the company's website.  

The indices are robust and transparent benchmarks potentially useful 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,” states Thomas Kettner, managing director at MVIS, in a statement. ”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.”

Founded in 2011, MV Index Solutions develops, monitors and licenses the MVIS Indices, a selection of focused, investable and diversified benchmark indices that are especially designed to underlie financial products. The company is the index business of VanEck, a U.S.-based investment management firm and ETF provider. Approximately $14.4 billion is currently invested in financial products based on MVIS Indices. 

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