MVIS, a subsidiary of VanEck, has launched a cryptocurrency-related index and multiple digital asset indices as bitcoin futures and options come underway.
The MVIS CrytpoCompare Digital Assets 10 Index (DA 10) pictured below is up more than 4,000% over the past year, versus around 1,600% for Bitcoin.
The index is part of a full suite of indices launched earlier this month by VanEck subsidiary MV Index Solutions. The DA 10 tracks the performance of the 10 largest and most liquid digital assets, including Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin and more using pricing data from a global list of over 50 exchanges to ensure fair price discovery and global representation.
“The index’s demanding size and liquidity screenings, combined with the exposure it provides to the biggest names in digital assets, makes this akin to a Dow Jones Industrial Average for the crypto space,” according to MVIS.
The index may be seen as a way for a broader group of investors to monitor the cryptocurrency markets. Unlike traditional indices, the digital assets trade twenty-four hours a day, seven days a week on a various exchanges, so it is more challenging to find the fair value price of the assets.
Looking ahead, the indices may pave the way for future ETFs, and more investors may be able to access this nascent asset class.