S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
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Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#2Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#3Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.
Initially, the index might be more for performance benchmarking for crypto funds than it would be for passive investing?
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#4Is this just a way of buying multiple cryptocurrencies without needing multiple clients and a fee?
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#5Is this just a way of buying multiple cryptocurrencies without needing multiple clients and a fee?
No - indices are basically a (possibly weighted) average of prices. They're informational, not an investment product.
That said, investment companies will frequently launch funds that track some index. So the investment products like what you're describing may follower.
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#6Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.
Probably the best strategy tbh, you only have to go to a few spots down to find some bad coins and the edge of the top 10 to find some outright scams
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#7There are currently projects on ethereum which implement indices in a decentralised fashion. Take a look at PieDAO [1] if you are interested. Included assets, their weights and all indices are governed by the DAO [2].
[1]https://www.piedao.org/ [2]https://www.investopedia.com/news/daos-and-potential-ownerle...
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#8Tangent question: why do financial services pluralize index as 'indexes' rather than 'indices'? Throws me off every time, and seems to be an industry thing.
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#9Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.
It wouldnt be uncommon to have multiple indices and one that is "Crypto ex-BTC ex-ETH"
Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021
#10Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.
Initially, the index might be more for performance benchmarking for crypto funds than it would be for passive investing?
So crypto funds can follow hedge funds in demonstrating how well they’re underperforming the market