Overview of the CoinDesk 80 Index
The digital asset scene is ever-changing, and now we have the CoinDesk 80 Index. This new index aims to track the performance of the next 80 significant digital assets, providing a diversified option for institutional investors who want something beyond just Bitcoin and Ethereum. The CoinDesk 80 Index is designed to create more liquidity and scalability in cryptocurrency markets, which is another way of saying it can help with trading, risk management, and asset allocation.
Boosting Liquidity in Cryptocurrency Markets
Liquidity is key for any market, and this index has the potential to improve liquidity in cryptocurrency. It will focus on assets that are both liquid and sizable, ensuring that the assets included are actively traded. This could bring in more participants and provide a more scalable option for trading and risk management.
The index will cover the next tier of large and liquid digital assets, which could be crucial for institutional investors. Bullish Exchange is involved, having listed a CoinDesk 80 Index Perpetual Futures Contract that uses their competitive spreads and deep liquidity.
Partnership with Bullish Exchange
The partnership with Bullish Exchange is a smart move. One of the fastest-growing regulated digital asset exchanges, Bullish has already surpassed $1 trillion in trading volume. Their average daily trading volume also shows they are a strong player in the market.
The CoinDesk 80 Index Perpetual Futures Contract lets participants manage their market exposure efficiently, which is essential for both institutional investors and fund managers.
Governance and Compliance Frameworks
Compliance and regulation are critical for indices like this. The calculation of the index is in real-time, using reference rates from top-tier exchanges under regulatory oversight. This should ensure that the index reflects market activity in a compliant way.
The CoinDesk 80 Index has quarterly reconstitutions, along with the CoinDesk 20 Index, using buffers to minimize turnover. Its eligibility criteria exclude certain types of assets like stablecoins and gas tokens.
Opportunities for Crypto Asset Managers
The CoinDesk 80 Index could provide various opportunities for crypto asset managers. Offering diversified exposure to a broader range of digital assets helps manage risk and leverage growth in this market. The focus on liquidity and scalability makes it appealing to investors looking to go beyond just Bitcoin and Ethereum.
Summary: The Future of Digital Asset Investment
The CoinDesk 80 Index is a new development in crypto asset management. It aims to create more liquidity and a robust governance framework, responding to institutional demand for exposure to digital assets.
As the market matures, this index may play a significant role in shaping the future of digital asset investment. It offers a comprehensive solution for navigating the complex landscape of digital assets.
