The cryptocurrency market is booming in the country. According to various reports, nearly 8% of Indians now own cryptos. While several players are investing and offering services for Indian investors, cryptocurrency app CryptoWire has launched a dedicated index for investors in the country.
CryptoWire’s IC15 is the first such index in the country that will monitor the performance of the 15 most traded crypto coins in the world. The launch has come at a time when the government is aiming to regulate the industry.
Also Read | World Bank forecasts ‘marked’ contraction in global growth in 2022
CryptoWire is a unit of crypto statistics provider TickerPlant. It is headquartered in Mumbai and helps to monitor the performance of cryptocurrencies in global markets.
How does the IC15 index work?
The IC15 will monitor the 15 most traded cryptocurrencies listed on leading crypto exchanges across the world by market capitalization. These coins are – Bitcoin, Ethereum, XRP, Bitcoin Cash, Cardano, Litecoin, Binance Coin, Chainlink, Polkadot, Uniswap, Dogecoin, Solana, Terra, Avalanche and Shiba Inu.
Also Read | Rolls-Royces makes record sales during COVID pandemic, here’s why
An Index Governance Committee formed by CryptoWire, composed of crypto experts, accomplished academics and industry veterans, will select 15 cryptocurrencies out of the top 400 cryptocurrencies by market capitalization.
The company says that it aims to create awareness among investors about crypto and its underlying blockchain technology. IC15 is similar to the Nifty 50 that monitors the 50 most prominent players in the capital markets across sectors.
Also Read | L&T hits new all-time high on securing two mega offshore contracts
For a cryptocurrency to be listed on IC15, it needs to trade on at least 90% of the trading days during the review period. Its market capitalization during the preceding month should also remain in the top 50. It must be among the top 100 most liquid cryptocurrencies in the world by trading value.
The base value of the IC15 is set at 10,000 and April 1, 2018, is the base date. This means, as of December 31, 2021, the index has made absolute gains of 615% to 71,475.18.
Also Read | Floyd Mayweather, Kim Kardashian face lawsuit for promoting EMAX crypto
How will the IC15 benefit investors?
IC15 aims to provide insights to investors about index-related products like crypto funds and exchange-traded funds (ETFs). A crypto ETF monitors the performance of single or multiple digital tokens that comprise the fund. Just like equities, crypto ETFs are also traded daily and their price fluctuates due to buying and selling.
Also Read | Associated Press to launch NFT marketplace for its Photographs
The index will provide insights into crypto mining and the broader crypto market. Apart from this, it will create diversification options for investors who wish to invest in other crypto blockchains and tokens.
IC15 could eventually become a representative of market sentiment and a benchmark for the fund managers to measure the performance of underlying cryptocurrencies.