Blocktown Tracks Three Indexes in Crypto
Since January 1, 2019, Blocktown Capital created and tracks three indexes in the cryptocurrency space that will be benchmarks for performance analysis across varying assets in the upcoming years.
The three indexes are Currency Index, Protocol Token Index and Bitcoin. We believe these indexes will perform very differently over the next three to four years. Index methodology, inclusion criteria and composition are described below.
Currency Index
Constituents:
- Bitcoin Cash
- Litecoin
- Monero
- Dash
- Zcash
Eligibility Criteria: Inclusion requires the currency to maintain its sole purpose as a medium of transaction, and not for utility on a designated platform, contract, enterprise or other ecosystem. Index excludes Bitcoin and is limited to the largest 25 currencies by market capitalization as reported by CoinMarketCap. Cumulative daily spot trading volume on “Real 10” exchanges must exceed an average daily notional trade volume of 1 million USD determined on a weekly basis. Currencies failing to meet this criteria for two consecutive months will be removed from the index at time of rebalancing. New currencies meeting above criteria are added at time of rebalancing.
Methodology and Reports: Index was launched at initial price of 100.00 and weighted by market cap according to CoinMarketCap with maximum weight limit of 50% for any single currency. When necessary, rebalancing weighted by market cap occurs on the 1st of the month at 14:00 hours UTC. Any currency greater than 50% of the index as priced in USD on the 1st of the month will be be rebalanced to 40% allocation. Reports on the performance of the index will be released on the first day of the month prior to rebalancing.
Protocol Token Index
Constituents:
- Ethereum
- EOS
- Cardano
- TRON
- Cosmos
- Tezos
- NEO
- IOTA
- Ontology
Eligibility Criteria: Inclusion requires the protocol token to maintain smart contract functionality which does not rely upon and/or is not secured by a secondary blockchain. Limited to top 20 largest assets according to market capitalization as reported by CoinMarketCap. Cumulative daily spot trading volume on “Real 10” exchanges must exceed an average daily notional trade volume of 1 million USD determined on a weekly basis. Tokens failing to meet this criteria for two consecutive months will be removed from the index at time of rebalancing. New tokens meeting above criteria are added at time of rebalancing.
Methodology and Reports: Index was launched at initial price of 100.00 and weighted by market cap according to CoinMarketCap with maximum weight limit of 50% for any single protocol token. When necessary, rebalancing weighted by market cap occurs on the 1st of the month at 14:00 hours UTC. Any protocol token greater than 50% of the index as priced in USD on the 1st of the month will be be rebalanced to 40% allocation. Reports on the performance of the index will be released on the first day of the month prior to rebalancing.
Bitcoin Index
Constituents:
- Bitcoin
Methodology and Reports: Index was launched at initial price of 100.00 and tracks performance of Bitcoin based on price according to OnChainFX. Reports on the performance of the index will be released on the first day of the month.
About Blocktown Capital
Blocktown Capital is an investment fund focused exclusively on blockchain ventures, digital currencies and application tokens. For more information, visit https://blocktown.capital.
