NYSE-listed MSCI Inc has launched two digital asset indexes to help investors evaluate sources of risk and return opportunities across the global digital-assets ecosystem.
The “first of their kind” MSCI Global Digital Assets Indexes aim to represent the performance of the top 30 or top 20 digital assets respectively, as measured by their full market capitalisation. These exclude stablecoins.
The first index, the MSCI Global Digital Asset ex Proof-of-work Index, seeks to represent the performance of digital assets that do not rely on proof-of-work consensus mechanism, which requires substantial, energy-consuming computational work for the creation of new blocks containing transactions in the distributed ledger.
Meanwhile, the MSCI Global Digital Assets Smart Contract Index seeks to represent the performance of digital assets that are associated with technology platforms supporting smart contract features. Digital assets that support smart contracts functionality are capable of being used by a wide range of decentralised applications across industries.
The new indexes will leverage insights based on collaboration with experts such as provider of institutional-grade digital-asset investment products and trading services Menai Financial Group.
The indexes will consist of a blend of single-digital-asset indexes designed and published by independent Swiss-based service provider Compass Financial Technologies. The indexes will use “datonomy” – a new classification system for the digital assets market. Delivered as a new data service, datonomy classifies coins and tokens based on how they are used.
Designed to provide a consistent, standardised way to help market participants view and analyse the digital assets ecosystem, datonomy will help create an increased level of transparency into how the market is moving and can be licensed for a variety of use cases, such as the review and assessment of portfolio performance and reporting.
MSCI head of thematic indexes Stephane Mattatia says the digital asset ecosystem is evolving rapidly along with investor demand for tools and solutions to help navigate the new asset class.
“The launch of these indexes embodies MSCI’s commitment to bringing clarity to diverse asset classes and to create solutions that capture long-term, disruptive investment trends,” he adds.