FTSE Russell, the global index, analytics and data provider, in association with DAR Data Services, have announced their intention to launch a new indicative FTSE Digital Assets Index.
The new index will be used to evaluate and test a benchmark for the most actively traded digital assets, the firms say, claiming it will also help assist in the establishment of new industry standards for the digital assets market, in consultation with market participants.
The indicative index, which will be available to registered users, will be calculated every 15 seconds, 24×7 with data sourced from selected digital exchanges vetted and approved by DAR. FTSE Russell will also provide a volume weighted average price (VWAP) for all 100 constituent digital assets. The VWAPs will be calculated by DAR, taking raw prices from the vetted exchanges and quality screened to remove erroneous and outlying prices prior to publication.
“Digital assets are a fast-growing segment of the market and we are delighted to be working with DAR,” says Mark Makepeace, non-executive chairman, information services division, London Stock Exchange Group. “The new indicative FTSE Digital Assets Index will help the market evaluate a benchmark and assist in the creation of industry standards. It will also offer much needed transparency and create greater awareness for investors interested in this new asset class.”
Doug Schwenk, chairman of DAR Data Services adds, “The FTSE DDS Digital Assets Reference Price takes trade prices from select vetted digital exchanges worldwide. Using data science and a robust methodology, we can create a clean price for potential future use by participants of this market.”
The digital assets market includes exchanges and trading venues that trade cryptocurrencies, digital tokens and coins, the firms say, adding they will establish an advisory group to help define assets eligible for index inclusion and publish these in due course. “The FTSE Russell Digital Asset Index will be designed to capture the essence of this dynamic market and will provide a framework for much greater research and understanding of this new asset class,” the firms say.