This FAQ represents a collection of questions our clients keep on asking. Please do not hesitate to contact us if you have additional questions.
What are digital assets?
Digital assets, such as Bitcoin, Ethereum, Litecoin are cryptographically secured, protocol-governed and mostly non-centrally issued assets that serve as store or value, medium of exchange or technology investments. Digital assets have gained steady recognition over the past years. We believe that, under the right market conditions, digital assets have the potential to integrate with the broad economy and become an investable asset class in their own right. For that reason, we believe that digital assets merit proper monitoring as a distinct asset class.
Why digital asset indices?
Currently digital asset markets are fragmented, difficult to monitor and do not meet index industry standards; in other words, standard digital asset benchmarks are missing. The MVIS CryptoCompare digital asset benchmarks fills this gap and brings industry-standard quality, transparency and investability to the digital asset market indexing.
How does MVIS pick the top 5/10/25 digital assets?
Top digital asset are picked by size and liquidity (equally weighting both criteria) from a universe of the top 100 digital asset by size.
How often will the indices be re-balanced?
Monthly. Digital asset markets are volatile and innovative, a monthly review enables precise monitoring of the latest trends and developments.
What’s your pricing data source?
Pricing is provided by CryptoCompare from a global list of 50+ exchanges. The index uses a special exchange liquidity based pricing mechanism for each asset and each exchange to ensure fair price discovery and representation globally.
How trustworthy is the pricing data?
The pricing source is designed to be reliable in a market that is otherwise prone to DDOS attacks, hacking, and unstable technological and legal environment
From how many different exchanges do you collect data?
This is defined in the index guide and depends on CryptoCompare’s coverage, which is currently about 60 digital asset exchanges globally.
When is the index calculated?
Indices are calculated each 15 seconds.
Could indices be “real time”?
They are real time.
Could an index be EUR/GBP/other hard currency based instead of USD?
Yes, the index could also be provided in any other currency; please let us know if we can fill any of your index needs.
How many digital asset are not included in the index.
Currently there are over 1000 digital assets. We cover the top 100 in our core benchmark which represents over 95% of the total digital asset market’s capitalization.
What happens if a particular digital asset gets delisted between re-balances?
Only in case a digital asset gets delisted at all exchanges, it will be removed from the index and be replaced by the top ranked non-component in the latest selection list, (except for the MVIS CryptoCompare Digital Assets 100 Index).
For what can the indices be used?
Active and passive financial products, hedge funds, ETFs, ETNs, structured notes, derivatives, futures contracts, etc… The indices can also be used to monitor markets.
Are these the first digital asset indices? If not, what else is out there and produced by whom?
MVIS CryptoCompare digital asset indices are the first that simultaneously meet industry standards, provide high quality pricing and offer diversified exposure to the top digital assets. A few more indices exist, but mainly used for internal or research purposes. Those indices do not meet industry standards, are generally not available for real-time dissemination and offer limited pricing capabilities.
Can an ETF or other products be designed around the indices?
Yes. The methodology is set up to build a wide range of financial product based on the indices. However, product design does not only depend on indices but also depends on other factors such as regulation.
Are the indices investable?
Yes, they are designed to be investable. Please see our index rule book for more information.
Can the index be dominated by only one or two constituents?
MVIS applies a capping scheme which assures diversification of each index. Please see our index rule book for more information.
What makes the indices unique?
Diversification (components, selection and weighting scheme), liquidity (additions must trade >1mln USD per day) and valuation of constituents (liquidity-driven pricing from global exchanges.)
How well do indices reflect the digital asset markets?
We cover the top digital assets by size and liquidity, we ensure a blue chip standard which is not only based on market capitalization, but also interest in respective digital assets.
Will the index be subject to any regulations or answerable to any regulatory authority?
Yes, as a European index provider, MVIS needs to be certified as a benchmark provider in the EU. In addition, it has filed as a self-indexer with the SEC in the United States.
Is there such a thing as “fair value” for digital assets?
As digital assets trade 24/7, there is practically real time pricing provided at all digital asset exchanges. Using a combined price weight from multiple exchanges, our indices are fair valued at all times.
How can I find out the value of the index?
The index value is disseminated via the MVIS website and standard data providers. You may refer to the indices through tickers and various standard identifiers such as ticker, ISIN, etc…
Have you “stress tested” the index?
Yes. In addition to backtesting, several selection and capping schemes were tested to ensure quality, robustness and investability.
What expertise does MVIS have in the digital asset industry?
MVIS has researchers who have been involved in the digital asset space for years. As a VanEck subsidiary and a CryptoCompare partner we have access to first class tradition asset management and digital asset management research and viewpoints.
Will MVIS launch any other digital asset indices?
MVIS plans to provide a broad DA index family to the market. We hope that the MVIS CryptoCompare Digital Asset Indices become the definitive benchmarks for the digital assets market. Please contact us if you have a request.