FTSE Russell launches multi asset index series covering digital asset market

Rick Steves

“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.”

FTSE Russell has launched its first multi asset, market cap index series covering the investable digital asset market.

The newly launched FTSE Global Digital Asset Index Series, built in association with the experts at Digital Asset Research (DAR), covers eight indices from large to micro-cap, and is the second FTSE Russell index series based on FTSE DAR Reference Price data.

24/7 data and hundreds of exchanges to define the investable universe

The indices monitor 24/7 data and hundreds of exchanges to define the investable universe, segmented by circulating weight. The FTSE Global Digital Asset Index Series market cap range includes:

  • FTSE Digital Asset Index (Large, Mid) [FDALM]
  • FTSE Digital Asset All Cap Index (Large, Mid, Small) [FDAAC]
  • FTSE Digital Asset Total Cap Index (Large, Mid, Small, Micro) [FDATC]
  • FTSE Digital Asset Large Cap Index [FDALC]
  • FTSE Digital Asset Mid Cap Index [FDAMC]
  • FTSE Digital Asset SMID Cap Index [FDASMC]
  • FTSE Digital Asset Small Cap Index [FDASC]
  • FTSE Digital Asset Micro Cap Index [FDAMIC]

Arne Staal, CEOat FTSE Russell, a London Stock Exchange Group (LSEG) business, said: “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. 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.”

Price sourcing is more difficult in digital asset market

The FTSE Global Digital Asset Index Series was developed to provide the data infrastructure and governance to serve client investment and analysis needs.

In the digital asset market, unlike more established markets, price sourcing is more difficult, making the firm’s asset and exchange vetting the cornerstone of all FTSE Russell digital asset indices.

FTSE Russell’s price construction and continued monitoring play a critical role in the FTSE Global Digital Assets Index Series methodology, providing the mechanism for rigorous asset and exchange inclusion controls in line with the requirements of the UK and EU Benchmark Regulation.

Standards across 21 criteria

It all starts with vetting exchanges that contribute to the pricing data. The process sets standards across 21 criteria to assess the multiple factors – technical, operational, regulatory, security, transactional, custodial, and more – that impact institutional quality.

This is followed by further vetting of individual assets, and finally filtering in real time. The price and index methodology work in tandem to maintain accurate, responsive, and reliable benchmark data for a wide range of index use cases.

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