SAINT HELIER, Jersey, December 15, 2021 / PRNewswire / – CoinShares International Limited (Nasdaq First North Growth Market: CS; USOTCQX: CNSRF) (“CoinShares”), Europe the largest and oldest crypto company, today announced the launch of two new indices to expand its family of digital asset indices following the start of the CoinShares Gold and Cryptocurrency index (CGCI) in 2020.
The two new indices include the CoinShares Gold and Bitcoin Index (CGBI), the first EU regulated index (EU BMR) for the digital asset sector that combines Bitcoin and gold, and the CoinShares Equally Weighted Crypto Index ( CECI), the first equal-weighted index of its kind. The indices, now available on Bloomberg Terminals and Refinitiv (formerly Reuters), are designed to provide exposure to crypto-assets while improving average returns and reducing volatility.
While there are several existing crypto-asset indices that provide broad exposure to crypto-assets through market cap weighting, they have been found to be limited in terms of risk diversification due to the high correlation between crypto assets. -active and are characterized by a volatility close to that of a single crypto-asset. CoinShares has developed the CGCI family of indices to bring more effective risk control to crypto-asset index products. The initial CGCI index was the product of two years of academic research conducted in partnership with Imperial College London, which found that a combination of gold and crypto assets in a way that accounts for their contribution At Risk offers a higher risk-adjusted return profile than holding only gold or cryptoassets.
The CGBI is a new index designed to have moderate operating costs and provide risk-managed Bitcoin exposure. The unique construction of the index takes advantage of the characteristics of two asset classes: the high volatility of Bitcoin, the low volatility of gold and the lack of correlation between the two.
The CECI has been developed to express a broader exposure to the digital asset class. We believe that an equally weighted index has several advantages over a market capitalization index. Evidence suggests that equal weight indices have historically produced superior returns. Equal weighting makes an index more diverse, rather than highly concentrated by a dominant player, this is especially problematic in the digital asset world where Bitcoin has dominated for so many years. While equal weight methodologies may result in greater volatility and reductions, overall we believe capturing the uplift of smaller and future digital assets is more important in the rapidly growing digital asset class. .
Daniel Masters, Chairman of CoinShares commented: “Well-researched and documented index products were the catalyst for institutional commodity adoption in the late 1990s with the advent of the Goldman Sachs Commodity Index. These new indices use academic research and provide regulated benchmark status to pull together successfully even with the strictest investment committees. “
James butterfill, a member of the Index Committee, added: “The expansion of the CGCI family of indices provides effective risk-adjusted returns, while the equally-weighted crypto index offers much broader exposure than the index-weighted indices. market capitalization, more effectively capturing the expanding digital asset ecosystem. . “
CoinShares has worked closely with the registered benchmark administrator, Compass Financial Technologies, to create indices that are robust, repeatable, and compliant with EU benchmark regulations (EU BMR). CoinShares also uses major market data providers Kaiko and Messari to ensure the reliability of the indices.
Indices are easily licensed and can be tracked by CoinShares. Investors can gain exposure through CoinShares Capital Markets, the group’s own-account trading branch. CoinShares is currently exploring opportunities to deploy the indices as investment benchmarks in its passive products business which manages $ 4.3 billion in AUM, under the direction of CRO Frank Spiteri.
For more information on the methodology, rebalancing, pricing and governance of CGCI, CGBI or CECI, Click here.
The indices are distributed on Bloomberg (tickers: COINCGBI & COINCECI) and Refinitiv (tickers: COINCGBI & COINCECI).
About the CoinShares group
CoinShares is Europe the largest and oldest digital asset investment firm, managing billions of dollars in assets on behalf of its clients. The Group is focused on expanding investor access to the digital asset ecosystem by creating new financial products and services that seek to provide confidence and transparency when accessing this new asset class. CoinShares is publicly listed on the Nasdaq First North Growth Market under the ticker CS and the OTCQX under the ticker CNSRF.
For more information on CoinShares, please visit: https://coinshares.com
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