FTSE Russell launches Digital Asset Index Series

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FTSE Russell has launched three new digital asset indexes: the FTSE Bitcoin Index, the FTSE Ethereum Index and the FTSE Cardano Index.

The firm writes that it has worked with Digital Asset Research (DAR) to build the framework needed to create a robust, reliable index series. The FTSE Digital Asset Index Series is designed to provide market participants a mechanism to evaluate digital asset investments and prices. The indices were developed in response to investor demand for benchmarks to accurately and methodically capture performance of digital assets, allowing for the more seamless integration into traditional portfolio analysis and processes.
FTSE Russell writes that cryptocurrencies require a new approach to measurement as they trade 24/7.

FTSE Russell has developed a ground-up transparent methodology that starts with the accuracy of its pricing data, which is used to establish the building blocks for more comprehensive index inclusion.

“At the heart of the index series methodology, mechanisms have been put in place to determine exchange and asset level eligibility. For digital assets, this vetting criteria is the cornerstone for reliable price and index data.”

The firm writes that it is working to blend these new asset types into traditional financial thinking around research, trading, investment and monitoring, which requires that they work with existing structures.
Since 2018, FTSE Russell and DAR have worked to align digital asset data with traditional investment infrastructure. Initially, the firms launched a suite of live, ticking indicative digital asset indices as a proof of concept.

Kristen Mierzwa, Managing Director, ETP Strategy and Business Development, FTSE Russell says:  “FTSE Russell’s new digital asset indexes will provide customers with a comprehensive, high quality, data source for their investment analysis and product development needs. Working alongside DAR, this launch reflects our combined expertise in digital asset data and index development, as well as our rigorous approach to compliance, governance, markets and performance measurement.” 

Doug Schwenk, Chairman, Digital Asset Research says: “We are pleased to be working with FTSE Russell on developing their portfolio of digital asset indexes. DAR provides institutional quality research and market data for crypto and FTSE Russell applies our experience in this domain to construct quality benchmarks.” 

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