How it Works, What it Means for Investors

CryptoWire, the global crypto super application which is a special business unit of TickerPlant, has recently launched India’s first cryptocurrency index IC15. It will measure the performance of the 15 most widely traded cryptocurrencies listed on leading crypto exchanges of the world by market capitalisation.

How will IC15 work?

With the emergence of cryptocurrency as an asset class, the CryptoWire has come up with a rule-based broad market index by market capitalisation. The CryptoWire has formed a Index Governance Committee comprising domain experts, industry practitioners and academicians that will select cryptocurrencies from the top 400 coins in terms of market capitalisation. A cryptocurrency must have traded on at least 90 per cent of the days during the review period and be among the 100 most liquid cryptocurrencies in terms of trading value to be eligible for the index. The eligible cryptocurrency should also be in the top 50 in terms of the circulating market capitalisation. The committee will select the top 15 cryptocurrency.

Index Value is equal to the sum total of circulating market capitalization of Index Basket divided with the Index Divisor and then multiplied it with the base value of 10,000. On the base date, the divisor is calculated based on the circulating market capitalisation of all the Index constituents. The Index divisor is normalized during every rebalancing period by multiplying it with a normalisation factor.

The index will be monitored, reviewed and rebalanced during every quarter. The cut-off date for the review period shall be the fifteenth calendar day of March, June, September, and December

IC15 Crypto Index: How it Will Help 

A cryptocurrency index will help to create index linked products such as crypto ETFs and funds, claimed CryptoWire. It will act as a performance benchmark for fund managers. IC15 index is a benchmark of the underlying crypto market with a diversified representation of overall market sentiments. Moreover, it will provide an easy solution for having a diversified portfolio. For investors, this uniquely positioning index will help in efficient derivatives trading in the cryptocurrency trading marketplace.

“CryptoWire is positioned to emerge as the partner of industry to spread knowledge, research and information and help participants take informed decisions. IC15 is another step towards this goal,” said Jigish Sonagara, MD and CEO, CryptoWire.

The base value of the IC15 index has been set at 10,000 and the base date is April 1, 2018. It simply means that the index has gained 615 per cent in absolute terms to 71,475.48 till 31 December 2021. Bitcoin has the highest weight on the index, with 51.57, whereas Ethereum holds 25.79 weightage on the index.

Apart from Binance Coin (5.03 weightage), no other altcoin holds more than 5 weightage on the index.

IC15 Index: What is there for Crypto Enthusiasts?

An index that captures over 80 per cent of market movement is, thus, a fundamental market tracking and assessing tool to base decisions on and enhance transparency. IC15 index enables crypto enthusiasts, investors, and investment managers to monitor the performance of cryptocurrencies in the global markets. “With the launch of India’s first index of crypto IC15, we intend to complete the knowledge circle for the entire crypto and blockchain ecosystem. This will not only push the ‘learn before earn’ initiative but also serve the industry with yet another powerful intervention,” CEO added.

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