In an effort to provide investors with valuable data, HashKey Capital and FTSE Russell have introduced a suite of digital asset indices. These indices cater to investors looking to incorporate cryptocurrencies into their portfolios.
The collaboration combines HashKey Capital’s industry expertise with FTSE Russell’s index management, vetting, and monitoring processes, setting standards for asset and exchange inclusion in response to growing institutional demand and regulatory requirements in the digital asset space.
One notable index in this suite is the FTSE Custom Digital Asset Top 20 Index, designed to track the top 20 crypto assets by market capitalization. This index provides an accurate representation of 90% of the digital asset market’s performance, offering investors a diversified benchmark for assessing digital asset performance. It ensures exposure to influential cryptocurrencies by including those with the highest market capitalization.
Another index is the FTSE Custom Digital Asset Infrastructure Index, which focuses on digital assets in the infrastructure layer of the crypto ecosystem. This includes smart contract platforms, protocol interoperability, and distributed computation and storage. It allows investors to monitor assets that underpin the core technological aspects of digital assets.
The FTSE Custom Digital Asset Application Index tracks digital assets with application functionalities, such as staking instruments and decentralized finance, crucial components of the evolving digital asset landscape. This index helps investors monitor assets vital to the broader adoption of blockchain technology.
What sets these indices apart is their precision, enabling traders and investors to track diversified baskets of assets aligned with nuanced investment strategies. This granularity allows market participants to stay informed about daily market performance while maintaining a holistic view of long-term trends across various digital asset segments and market capitalizations.
The launch of these indices marks a significant milestone in the digital asset market, as investors increasingly seek to diversify beyond established cryptocurrencies. Mr. Deng Chao, Managing Director at HashKey Capital, acknowledges this shift and emphasizes their commitment to providing innovative solutions to address the evolving needs of clients navigating this dynamic asset class:
“We have witnessed a significant surge in demand from investors who want to diversify their portfolios beyond the established cryptocurrencies, and our new indices are a testament to our commitment to providing innovative solutions that cater to the evolving needs of our clients, who look to us to navigate and understand the complexities of this robust and thriving asset class.”
Starting from January 24, these indices will be accessible on the FTSE Russell website, providing a valuable resource for informed decision-making in the digital asset space. Plans are underway to make these indices available through renowned data providers such as Bloomberg, Factset, LSEG Data & Analytics, Morningstar, and S&P Capital IQ, expanding accessibility to a wider range of market participants.
Chris Williamson, Head of Asia-Pacific at the Index Investments Group of FTSE Russell, expressed excitement about the collaboration, emphasizing the rigorous vetting and monitoring process applied to these indices:
“We are excited to have collaborated with HashKey Capital in the development of these new custom indices. The indices start with our rigorous vetting and monitoring process, setting standards for asset and exchange inclusion to meet institutional demand for investability and regulatory integrity in this new asset class.”
HashKey Capital, a crypto-native firm, has played a significant role in advancing the blockchain industry, managing over $1 billion in client assets and making numerous investments in infrastructure, tools, and applications. Their extensive knowledge and network connect founders, investors, developers, and regulators across the blockchain ecosystem.
FTSE Russell is a leading global provider of index and benchmark solutions across diverse asset classes and investment objectives. They assist investors in making informed decisions, managing risk, and seizing opportunities. Asset owners, managers, ETF providers, and investment banks rely on FTSE Russell solutions for benchmarking and investment strategy analysis. With a history spanning over 35 years, FTSE Russell continues to innovate, shaping the next generation of benchmarks and investment solutions for the global investment community.