Crypto Indexes Rolled Out By Bitwise

Announcements, News | August 16, 2018 By:

Bitwise Index Services has created three additional indexes covering the mid-cap, small-cap, and total-market segments of the crypto market.

Bitwise Index Services, a subsidiary of crypto investment startup Bitwise Asset Management, develops cryptocurrency indexes and conducts research in the area of cryptocurrency investing.

To complement its existing Bitwise 10 Large Cap Crypto Index (BITX), the firm added three new indexes for investors to track baskets of digital assets. These include the Bitwise 20 Mid Cap Crypto Index (BITW20), Bitwise 70 Small Cap Crypto Index (BITW70) and Bitwise 100 Total Market Crypto Index (BITW100). BITX was previously called the Bitwise HOLD 10 Index.

The cypto indexes capture the investable crypto market as measured and weighted by free-float and five-year inflation-adjusted market capitalization. The index methodology features rules that mitigate risks surrounding liquidity, security, exchange concentration, regulatory status, and more, and aim to fully capture the investable crypto market opportunity. The Bitwise crypto indexes are broadly available throughout the financial ecosystem, including via Bloomberg, Reuters, FactSet, and other data aggregators, as well as the Bitwise website and API.

“Our indexes are built from the ground up to respond specifically to the cryptomarket,” said Matt Hougan, Global Head of Research at Bitwise and former CEO of both ETF.com and Inside ETFs. “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 indexes are safe and replicable. We believe they are the best representation of the investable cryptoasset market in the world.”

To support the indexes, Bitwise created a new index advisory board, featuring experts in institutional indexing and cryptoeconomics. Board members include Hougan, Srikant Dash, the former Global Head of Indexing for Bloomberg and the former Managing Director and Global Head of Research at Standard & Poor’s Indices, and Spencer Bogart, a Partner and Head of Research at Blockchain Capital.

“One unique thing about Bitwise is the firm’s ability to blend deep, crypto-specific expertise with in-depth knowledge of institutional asset management and indexing,” said Bogart. “The Bitwise Crypto Index Advisory Board and the family of Bitwise indexes launching today are proof of that.”

“Well-constructed indexes and index-linked products are key to the development of efficient investment and risk management in any new asset class,” added Dash. “I am pleased to help Bitwise bring such tools to the rapidly evolving cryptocurrency market.”