Bitmain Launches Cryptocurrency Index to Track Market Performance
Mining giant Bitmain has released a crypto benchmarking tool for retail and institutional investors.
Chinese cryptocurrency mining giant Bitmain has launched a new digital assets index. According to a methodology overview released on Friday, the Bitmain Crypto Index (BCI) “is developed to provide institutional and retail investors with a transparent, timely, methodology-based, and investable benchmark of the most active cryptocurrencies traded globally.”
The gauge will track the performance of the 17 largest cryptocurrencies by market capitalization, denominated in US dollars. The coins in the basket currently are: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), EOS, Ethereum Classic (ETC), Litecoin (LTC), XRP, Dash, IOTA, NEO, Monero (XMR), Cardano (ADA), Tron (TRX), Icon (ICX), Lumens (XLM), Zcash (ZEC), and OmiseGo (OMG).
The BCI will comprise a real-time spot price, which will be updated every second, and a daily reference price, published once a day. It further features combined Bitmain Big 10 Index (BLC10) based on ten large-cap cryptos and representing more than 90% of the wider market’s value, Bitmain explained.
The company added that the price data would be collected from a number of crypto exchanges that fulfill the set of criteria such as price transparency, regulatory and compliance level, trading volume, frequency and quality of the price data, jurisdiction, and reputation. The list of selected platforms currently includes Bitfinex, Binance, Bitstamp, Bittrex, GDAX, Gemini, Huobi, Itbit, Kraken, OKEX, and Poloniex. Their eligibility will be reviewed on a monthly basis.
Bitmain added that the index is wholly owned by Bitmaintech Pte. Ltd. and is evaluated monthly by the Bitcoin Index Operations Committee to ensure that the index methodology and index weights are “as updated and representative as possible”.
The news comes at a time when Bitmain is planning for an Initial Public Offering (IPO). In September, the miner officially filed a draft application for its highly-anticipated market flotation on the Hong Kong Stock Exchange (HKEX). In the preliminary document, the company also made its first public financial statement that disclosed its figures for the first half of the year.