PRICE INDEX — METHODOLOGY

The price index of a cryptocurrency is calculated based on the Relevant Transactions on all Representative Exchanges. Calculation steps for the iBTC, for example, on any given Calculation Day are as follows:

1. All Relevant Transactions are added to a raw database, recording the trade price and size for each transaction.
2. The data is partitioned into 6 equally-sized time intervals of 10 seconds each.
3. For each partition separately, the volume-weighted median trade price is calculated from the trade prices and sizes of all Relevant Transactions, i.e. across all Representative Exchanges.
4. A volume-weighted median differs from a standard median in that a weighting factor, in this case trade size, is factored into the calculation.
5. The iBTC is then given by the equally-weighted average of the volume-weighted medians of all partitions.