TechFlow reports that Grayscale Investments, a digital asset management firm, is partnering with FTSE Russell, a subsidiary of the London Stock Exchange and global index provider, to enter the cryptocurrency index business.
The two companies will jointly launch a product called the "Crypto Sector Index Series," designed to offer investors multiple indices tracking digital assets based on their use cases.
According to the official announcement, these indices will include the following categories of assets: cryptocurrencies serving as mediums of exchange or stores of value (such as Bitcoin, Litecoin); smart contract platforms (such as Ethereum, Solana, Polygon); tokens representing financial services (Uniswap, Compound, Curve); tokens tied to art, gaming, and media assets (NFT projects); and projects focused on real-world applications (such as Chainlink, Filecoin).
To measure assets within each category, the indices will use the square root of each cryptocurrency's market capitalization. Inkoo Kang, Head of ETFs at Grayscale, said: "This ensures that assets with the largest market caps, like Bitcoin, do not disproportionately influence the overall portfolio, enabling investors to gain more diversified exposure."
