Wilshire, in Association with the Financial Times, Launches Digital Asset Indexes to Bring More Reliable Data to Investors
- 20.09.2021 03:00 pm
The new index series in collaboration with CryptoCompare gives institutional investors broad coverage of the crypto market
Prices are aggregated from top-rated exchanges that meet investment-grade ratings and can be traded 24/7/365
Wilshire, a global investment technology and advisory company, in association with leading global news organisation, the Financial Times (FT), today announced the launch of a new series of digital asset indexes to help investors understand and navigate this fast expanding market better.
Developed with CryptoCompare, a leading global cryptocurrency market data provider, the FT Wilshire indexes combine CryptoCompare’s market standard exchange ratings and Wilshire’s methodology to aggregate the prices of digital assets from an initial seven of the most highly rated crypto exchanges. Requirements of a minimum A rating and overall score of at least 70 over the previous 12 months mean they have robust Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, as well as legal and regulatory compliance and due diligence processes.
The series of indexes will allow institutional investors to more confidently access an asset class that has previously held greater appeal for retail investors with higher risk tolerances. Wilshire’s proprietary methodology will apply to both individual digital assets and indexes covering over 85% of the market capitalization on eligible exchanges. This rigorous and innovative approach offers higher levels of data transparency and establishes a set of credible benchmarks.
Digital assets have experienced rapid growth and flourishing innovation. The market capitalisation of the top five cryptocurrencies is estimated to be $1.4 trillion. Links between crypto and fiat currencies are expanding. Regulators are now stepping up with more standard-setting and greater consumer protections.
By aggregating the prices of these consistently highly rated crypto exchanges, Wilshire can build digital asset index products whose values are derived from genuine price discovery.
As digital assets are traded 24/7, Wilshire is also introducing closing times for different geographical regions, giving jurisdictions the flexibility for end-of-day valuation at hours convenient to their time zone. This can help institutions settle derivative contracts and satisfy regulatory obligations.
Institutional investors, fund managers and banks are keen to explore the potential of digital assets as global regulators and policymakers seek to harmonise and regulate the market.
The new FT Wilshire Digital Asset Index Series is the latest product development under a brand licencing agreement with the FT, first announced earlier this year. The series will initially include 10 single asset indexes and three multi-asset indexes:
• FT Wilshire Bitcoin Blended Price Index
• FT Wilshire Ethereum Blended Price Index
• FT Wilshire Cardano Blended Price Index
• FT Wilshire Dogecoin Blended Price Index
• FT Wilshire Chainlink Blended Price Index
• FT Wilshire Uniswap Protocol Blended Price Index
• FT Wilshire Bitcoin Cash Blended Price Index
• FT Wilshire Polkadot Protocol Blended Price Index
• FT Wilshire Solana Blended Price Index
• FT Wilshire Litecoin Blended Price Index
• FT Wilshire Top 5 Digital Assets
• FT Wilshire Top 5 Digital Assets ex Bitcoin
• FT Wilshire Bitcoin & Ethereum Index
The new indexes, enhanced data and blended prices will be published in real time and feature among the FT’s markets data.
Mark Makepeace, Chief Executive Officer of Wilshire, said: “Our role is to provide the tools and strategy necessary for safe access to new markets for investors. As new digital forms of investment and the adoption of blockchain technologies take shape, the financial services will need help to ensure institutional investors gain safe access and understand the drivers of performance and risk associated with digital assets.”
John Ridding, Chief Executive Officer of The Financial Times, said: “Digital assets are a dynamic and fast moving sector with the potential to have considerable impact on financial services and the investment industry. They are drawing the attention of a wider pool of investors and regulators. There is a need and an opportunity to provide investors and readers with authoritative metrics, news and analysis. As a globally trusted source on market trends and innovations, the FT is supportive of enhanced data that helps readers understand the risks as well as the opportunities and informs their perspectives.”
Charles Hayter, Chief Executive Officer of CryptoCompare, said “We are seeing a substantial and increasing interest in digital assets from institutional investors. Since 2014, we have worked to develop an extensive and reliable suite of market data to offer access and transparency to this rapidly growing asset class. We look forward to working closely with the Financial Times and Wilshire to provide our trusted digital asset data to build these innovative products offering institutional investors new avenues for digital asset exposure.”