FTSE-100 indexer rolls out crypto equivalent amid market turmoil
The firm behind the FTSE-100 has rolled out a series of crypto indexes today as it doubles down on a push into digital assets despite extreme volatility in the market.
FTSE Russell, part of London Stock Exchange Group, said today the new Global Digital Asset Index Series would cover the whole “investable digital asset market” and will boost transparency in the sector at a time of turbulence.
The indices will monitor round-the-clock data and hundreds of exchanges to define the investable universe, FTSE Russell said. Research firm Digital Asset Research has worked alongside the indexer to help define the new range which spans eight areas from large to micro-cap.
Bosses at FTSE Russell said the launch comes at a pivotal point for the sector, as it is buffeted by headwinds in the wake of FTX’s collapse.
“We are pleased with the progress the FTSE Global Digital Asset Index Series launch represents for our digital asset capability, as transparency in this asset class becomes more important than ever,” said Arne Staal, boss of FTSE Russell.
“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”
City PM first revealed that the indexer was plotting a move into the space with a series of dedicated indexes to dit along its flagship equity offerings.
However, the industry has been plunged into a ‘crypto winter’ since then and prices have been dealt a fresh blow in recent weeks after the implosion of crypto exchange FTX.
Bitcoin, the most valuable cryptocurrency, has plummeted more than 23 per cent in the past month and nearly 70 per cent over the past year.
FTSE Russell said thethe Global Digital Asset Index Series would help provide a way in for investors amid the volatility however, by providing the “data infrastructure and governance to serve client investment and analysis needs.”