Grayscale partners with FTSE Russell to launch cryptocurrency index product

Grayscale Investments is partnering with index provider FTSE Russell, a subsidiary of the London Stock Exchange, to enter the crypto index business. The two companies announced on Tuesday morning that they would join forces to launch a product called the Crypto Sector Index Series, which will include several indices that track the prices of various digital assets based on their use cases. According to the announcement, these use cases include: cryptocurrencies as a store of value exchange medium (such as Bitcoin, Litecoin), smart contract projects (such as Ethereum, Solana, Polygon), and tokens representing financial services (Uniswap, Compound, Curve) , tokens representing art, games and media assets (NFT projects) as well as projects oriented to real-world applications (Chainlink, Filecoin, etc.). Inkoo Kang, Grayscale’s head of ETFs, said that in order to weigh the assets within each category, these indices will use the square root of the market capitalization of each cryptocurrency to avoid large market capitalization assets having an excessive impact on the entire index and ensure that investors receive more diversity. investment exposure. (The Block)