The index provider LIMEYARD has announced the launch of its Crypto Asset Index, together with Decentriq, a FinTech enabling financial institutions to benefit from distributed ledger technology based in the Swiss crypto valley.
The LIMEYARD Crypto Asset Index (LYCAI) has been designed to represent the cryptocurrency market while addressing regulatory and compliance related concerns. The Index has been licensed to be used as benchmark for the Blockchain Technologies Note (DE000A19VT92), listed on the Frankfurt Stock Exchange. It is available for licensing by other financial products.
Stefan Deml, Founder and CTO of Decentriq, commented:
We’re delighted to join forces with LIMEYARD, combining our knowledge of the crypto market and their decades of experience in the index business, to build the first index representing so well the nascent, yet growing crypto asset class.
Patrick Valovic, Founder and Managing Partner of LIMEYARD, explained:
Our team has built this Index considering the needs of regulators, who have rejected some ETF proposals because their methodology was considered as too simplistic, and players could front run them. Excluding crypto assets which are enabling anonymity is also a way to ensure investors that any product based on this Index will be compliant.
The rules-based methodology can be summarized as follow:
- The universe is comprised of crypto assets (coins or token) traded on at least two out of 13 eligible exchanges. Crypto assets enabling anonymity are precluded, as well as those pegged to fiat currencies.
- To be included in the Index, components are screened to ensure their investability (daily trading volume) and reduce their volatility (exponential moving average of the daily market capitalization.)
- The Index is composed of the top 20 components passing these screenings.
The Index is calculated both in USD and in BTC. Public information only is used to build the Index.