CoinDesk Indices Launches CoinDesk Market Index (CMI)
CoinDesk Inc. announces the launch of the CoinDesk Market Index (CMI), which includes eight subindices, constituting a family of broad-based digital asset indices designed to measure the market capitalization-weighted performance of the digital asset market. The subindices reflect sectors defined by CoinDesk's Digital Asset Classification Standard (DACS). The CoinDesk index family is the first to help quantify contributions to returns and risk by sectors and to measure sector exposures of managers versus their benchmarks and peer groups. For crypto native builders and investors, the CMI family provides general and sector peer groups and benchmarks of competitors for comparison and valuations. Moreover, the sector subindices may be more appropriate to measure the performance of sector-focused funds, and the subindices may be used to build sector rotation strategies. Read more here: Ordered Chaos: Why the CoinDesk Market Index Matters for the New Economy.
Jodie Gunzberg, Managing Director of CoinDesk Indices, said, "In an environment of high inflation or economic uncertainty, CMI provides clarity into the behavior of digital assets as a whole, and its sectors enable measurement of market segments to identify the return drivers, and differences to better manage risk."
Mainstream and crypto native investors seek broad-market and sector data for performance measurement, actionable ideas, risk management, and peer group evaluations. The CMI may serve as an asset class proxy in asset allocation models to help investors determine how much to allocate to digital assets.
The CMI methodology narrows the DACS digital asset universe by requiring minimum pricing and market cap weighting the eligible assets. There are four primary eligibility criteria for assets in the CMI family: 1. Included in the latest DACS report; 2. Listed on at least two Eligible Exchanges; 3. Listed on an Eligible Exchange* for a minimum of 30 days; 4. Available pricing by a CoinDesk reference price**. The constituents that meet these four requirements are then weighted by market capitalization, reconstituted, and rebalanced monthly. The CMI index family is calculated in real-time using reference rates for each asset.
*Current Eligible Exchanges: Binance.US, BitFlyer, Bitstamp, Bittrex, Coinbase Pro, ErisX, FTX.US, Gemini, itBit, Kraken, LMAX Digital, Okcoin as listed in the CoinDesk Digital Asset Indices Policy Methodology.