FTSE Russell, a subsidiary of the London Stock Exchange Group, has launched a series of indices linked to global digital assets. The company mentioned this in press release Posted on its website on Tuesday, November 29th.
The creator of the FTSE100 stock index explained that the eight indices were prepared in collaboration with data firm Digital Asset Research. She also indicated that this is the second series of FTSE Russell Indices based on the FTSE.
This is the first time that indices related to cryptocurrencies and other digital assets have been released in the UK. Prior to the FTSE Digital Asset Index series, other companies in the US and Germany have already launched other cryptocurrency indices in 2021. These included the S&P Cryptocurrency Index, Soloactive’s CMC Crypto 200 Index, and the Nasdaq Crypto Index.
Composite indices for cryptocurrencies
The new indices range from large-cap coins to small-cap coins such as the FTSE Digital Asset Index, FTSE Digital Asset All Cap Index, FTSE Digital Asset Total Cap Index, and FTSE Digital Asset Large Cap Index.
Similarly, the global indices FTSE Digital Asset Mid Cap Index, FTSE Digital Asset SMID Cap Index, FTSE Digital Asset Small Cap Index, and FTSE Digital Asset Micro Cap Index appear.
The currencies that will make up the various indices are not disclosed. However, the company has published a fact sheet containing performance data for each for the first quarter of 2022.
"FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework," said FTSE Russell CEO Arne Staal.
She added that such a framework would be “underpinned by strong governance and comprehensive data to meet the needs of investors, both where they are now and as they prepare for change in this market.”
As I read on The company’s websiteDigital asset indices are modular and structured “taking into account investors’ flexibility and customizability”.
Indices are used in the stock market to track the prices of available assets. Cryptocurrency-related indicators were only published early last year.