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Cryptocurrency index with ‘rules-based methodology’ for BTC, Ripple, Litecoin, ETH and more by Bloomberg

Anirudh VK

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Bloomberg announces cryptocurrency index with "rules-based methodology" for Bitcoin [BTC], Ethereum [ETH] and more
Source: Unsplash

Bloomberg announced yesterday that they would be partnering with digital asset management firm Galaxy Digital Capital Management LP. The partnership in question would be creating an index designed to ‘track the performance of the largest, most liquid portion of the cryptocurrency market’.

The index is designated as Bloomberg Galaxy Crypto Index or BCGI. It is weighted by market cap and measures the performance of ten USD-traded cryptocurrencies. As such, the index is measured using the USD currency. The index is reconstituted and rebalanced monthly. It is administered according to “four guiding principles”, which are:

  1. Data Integrity, where cryptocurrencies must maintain minimum thresholds for daily traded USD value
  2. Diversified, where constituents of the index cannot exceed 30% or contribute below 1% of the index’s market cap
  3. Representative, which is its aim to provide ‘a proxy for the broader cryptocurrency market’
  4. Continuity, where the index is intended to be responsive to the changing nature of the market in a manner that it does not completely change it from year to year

As per Bloomberg’s press release, it says:

“…the BGCI offers the first institutional grade benchmark for the cryptocurrency market.”

The currencies in question are Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Bitcoin Cash [BCH], EOS [EOS], Litecoin [LTC], Dash [DASH]. Monero [XMR], Ethereum Classic [ETC] and Zcash [ZEC]. The currencies in the index are calculated using the eligibility criteria mentioned in the Bloomberg Galaxy Crypto Index fact sheet:

  1. The cryptocurrency must trade in USD
  2. Minimum of two sources that meet Bloomberg’s due-diligence criteria, which are that they have documented compliance programs that include but are not limited to Anti-Money Laundering and Know Your Customer policies, and have provided Bloomberg with organizational or ownership chart
  3. A minimum 30-day median daily value traded of $2 million across a minimum of two eligible pricing sources
  4. The cryptocurrency must be free-floating, that is, its price is not pegged to the value of any assets, including digital ones
  5. The above criteria must be met for 3 months
  6. Maximum number of constituents in the index is limited to the top 12 coins ranked by market cap
  7. Hard forks are also considered using the same criteria

The current standings of the currencies are as below



Index Constituent Weights

Index Constituent Weights

Alan Campbell, Global Product Manager for Bloomberg Indices said:

“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies. The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”

Steve Kurz, the Head of Asset Management at Galax Digital Capital Management said:

“We are thrilled to partner with Bloomberg on the BGCI.  The index’s independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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Altcoins

EOS, Tron [TRX] and Ethereum [ETH] are top three cryptocurrencies, says China’s CCID Group

Akash Anand

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EOS, Tron [TRX] and Ethereum [ETH] adjudged top three cryptocurrencies by China's CCID Group
Source: Pixabay

Analysis of the cryptocurrency market by various global entities has been a standard procedure for a lot of organizations to keep track of the updates and developments in the field. One such major analyst is China’s CCID Group, which works under the Xi Jinping-led country’s Ministry of Industry & IT [MIIT].

In the latest edition of CCID’s Global Public Blockchain Technology Assessment Index, it was stated that EOS retained its title as the best cryptocurrency according to three factors assigned by CCID. The three factors were basic technology, applicability, and creativity, criteria that are aimed at assessing the most effective digital assets in the market right now.

In terms of basic technology, EOS scored a whopping 103.7, making it the only cryptocurrency to breach the 100-mark. It received a score of 20.2 and 24.7 when it came to applicability and creativity, respectively. The surprising result of this assessment was that Bitcoin [BTC], the largest cryptocurrency on the charts, did not even feature in the top-10 of the CCID rankings.

According to the analysis, Tron came in second with a Basic tech score of 95.6 and an applicability score of 24.3. Tron CEO Justin Sun had stated multiple times that EOS and Ethereum were Tron’s biggest competitors, but it turns out that it had the lowest creativity score among the three, clocking 24.1 to Ethereum’s 31.0.



The third-ranked cryptocurrency was Ethereum [ETH], sticking to the trend as all the three cryptocurrencies were focusing on DApps. Despite being third in the rankings, Ethereum had the lowest basic tech score, with its 76.6 being lower than that of relatively smaller coins like Steem and Ontology.

There seem to be some connection with DApps and the CCID rankings as these applications slowly entered the main fore in the cryptocurrency environment. Sources informed that Tron DApps had recently surpassed that of Ethereum and EOS in terms of weekly active and new users.





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