Traditional traders using Bloomberg and Reuters terminals will now be able to access a new crypto index of the industry’s top performers. On June 13, leading crypto index provider CryptoIndex made the announcement.
Up to 500,000 traders are about to take the plunge into cryptocurrency. When using either Reuters or Bloomberg’s trading terminals, these traders will now see data analyzing the top 100 cryptocurrencies.
The crypto index offers an alternative to traditional indices such as the S&P 500 and NASDAQ, which track top performing companies.
Details of the Crypto Index
The index extracts more than 33 TB of data covering 1800 digital assets. Using this information, it pulls the top 100 performing cryptos into one portfolio index. CryptoIndex’s belief is that this index will provide a valuable tool for trading cryptocurrency because it is:
- Cost efficient
- Offers a way to participate in the growth of the crypto market.
CryptoIndex CEO VJ Angelo says he has “witnessed firsthand the growing demand for high-quality insight into traditionally opaque, misunderstood cryptocurrency.”
He also explained that the crypto index they are creating is different from standard indices:
“Our index takes into account collective sentiments expressed on social media, in addition to complex data analysis of volume trades and predictive analytics.”VJ Angelo, CEO of CryptoIndex
By using an AI algorithm, Zorax, the crypto index conducts an exhaustive analysis of millions of trades and announcements from nine of the biggest crypto exchanges. Additionally, they add social media activity on platforms like Twitter and developer activities on GitHub into the mix.
Coins must maintain a top 200 listing for 3 consecutive months to be on the index. Every month, the algorithm rebalances. This way it can follow through with any coins that may have been pumped and dumped or otherwise artificially inflated.
Traditional finance keeps coming despite bad news
The move seems to have come at an odd time since hints of drastically stifling regulations are being dropped far and wide across the cryptosphere:
- The G20 Summit this month has found the world’s leading economic powers vowing to submit to FATF guidelines. The suggested framework would cripple crypto exchanges.
- India, Hong Kong, China, and the US all have instances where regulatory authorities are wanting to snuff out any non-bank behavior of cryptocurrencies.
- In America, crypto exchange giant Binance is slashing its services to US residents largely in response to the regulatory atmosphere.
Yet as we know in the crypto industry, nothing is ever normal. If anything, the timing of the crypto index announcement shows that institutional investors are bullish on bitcoin. Regardless of the regulatory drama.
Crypto is becoming less of a fringe product and more a welcome asset. That’s because traders are seeking to diversify their portfolio. Not only that, they want to get in on what many perceive as a massive market in its nascent stages.