WisdomTree and CF Benchmarks are launching six benchmark indices to coincide with WisdomTree’s listing of three broad crypto basket strategies
CF Benchmarks is excited to announce a set of new multi-asset crypto indices in partnership with WisdomTree to coincide with the listing of three exchange traded products (ETPs) by the asset manager on the Deutsche Börse and SIX exchanges.
Each ETP will be represented by two new benchmark indices calculated using CF Benchmark’s regulated Benchmark Methodology: a Real Time Index, published every second, 24 hours a day, seven days a week; and a Settlement Price, published once a day, every day, at 16:00 London Time.
The three ETPs, WisdomTree Crypto Mega Cap Equal Weight strategy, WisdomTree Crypto Market strategy and WisdomTree Crypto Altcoins strategy, offer simple, secure and cost-efficient exposure to a significant proportion of the cryptoasset market’s total capitalisation.
The broad-market WisdomTree Crypto Market indices and WisdomTree Altcoins indices are constructed in accordance with CF Benchmarks’ modified free float market capitalisation methodology. WisdomTree Mega Cap indices, which are intended to represent relatively ‘large cap’ crypto assets, are constructed by means of CF Benchmarks’ equal weight methodology.
WisdomTree CF Settlement Price indices have been designed to enable calculation of the daily Net Asset Value (NAV) of their respective WisdomTree ETP. WisdomTree CF Real Time indices have been designed to facilitate intraday valuation of their respective WisdomTree ETP.
As a Benchmark Administrator authorised and regulated by the FCA, CF Benchmarks is subject to UK Benchmark Regulation, with equivalence with the EU regime until at least 2023. By definition, it follows that all WisdomTree CF indices are themselves regulated benchmarks, calculated according to CF Benchmarks’ Benchmark methodology which ensures that they meet the most stringent regulatory standards.
The new benchmark indices, their tickers, and the methodology by which the weightings of their respective constituents are calculated, are listed in the table below.
Further details on the purpose of each index pair are summarised below.
WisdomTree CF Mega Cap indices
WisdomTree CF Crypto Mega Cap indices are designed to track the performance of a basket of crypto assets representing the highest-capitalised portion of the cryptoasset market. They are intended to give exposure to a basket of cryptoassets that are generally leaders in the market in terms of market capitalisation and liquidity. The indices are currently comprised of Bitcoin and Ether. They are equally weighted and rebalanced on a quarterly basis to maintain equal weighting of index constituents.
WisdomTree CF Crypto Market indices
WisdomTree CF Crypto Market indices are designed to track the performance of a diversified basket of crypto assets representing the large-cap portion of the cryptoasset market. The indices are comprised of cryptoassets with the largest market capitalisations of those that meet the eligibility criteria as set out in the methodology for these indices. The indices are weighted according to a modified free float market capitalisation methodology.
WisdomTree CF Altcoins indices
The WisdomTree CF Crypto Altcoins indices are designed to track the performance of a diversified basket of cryptoassets representing the large-cap portion of the cryptoasset market excluding Bitcoin and Ether. The indices are comprised of crypto assets with the largest market capitalisations, excluding Bitcoin and Ether, that meet the eligibility criteria as set out in the methodology. The indices are weighted according to a modified free float market capitalisation methodology.
Find out more about WisdomTree Crypto Basket ETPs at the WisdomTree.eu website.
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.