AlphaPoint launching cryptocurrency indexes and ‘smart basket’ technology
AlphaPoint, a blockchain technology company that enables institutions to digitize assets and operate digital asset exchanges globally, today announced plans to launch AlphaPoint Indexes. AlphaPoint Indexes represent the statistical performance of the broadest sector of cryptocurrency markets while the AlphaPoint Smart Basket functionality further extends the company’s technology leadership in offering digitization and white-label digital asset exchange platforms.
The company’s initial indexes will represent the highest valued cryptocurrencies and the most liquid cryptocurrencies:
- AlphaPoint Leaders Index (APLDRS) comprises the largest 8-15 tokens covering approximately 80% of the global cryptocurrency market capitalization. APLDRS will reflect the highest valued crypto assets.
- AlphaPoint Fast Movers Index (APFMRS) comprises the top 8-15 tokens by trading volume, covering approximately 80% of global cryptocurrency market volume. APFMRS will reflect the most liquid crypto assets.
In addition to AlphaPoint enabling asset managers and other industry participants to benchmark performance against the broader cryptocurrency market, AlphaPoint Indexes may also be licensed to create derivative products.
Leveraging its AlphaPoint Exchange product (APEX), AlphaPoint will offer a new capability which will replicate the performance of the underlying AlphaPoint Indexes, enabling exchange operators to create additional products to offer investors. The AlphaPoint Smart Baskets framework will create a token that mirrors the performance of the underlying AlphaPoint Index by automating the simultaneous purchase (bid) or sale (offer) of the net group of cryptocurrencies in the licensed index. Investors, in turn, will be able to actively take broad positions in cryptocurrency markets as a whole, while passively rebalancing their portfolios through the APEX automation process.
“We are excited to offer a transparent, rules-based index which we believe will become the definitive benchmark in the industry. AlphaPoint’s network of customer exchanges is unrivaled and offering data-enabled tools is the next logical arena where we can help institutions drive additional liquidity. Just like our asset digitization and exchange technology, our data-enabled tools will create opportunities for institutions to offer new products and ultimately, for crypto and digital assets to be accessible to a wider set of industry participants.”
Several firms, including DQR and Einstein Exchange, have agreed to partner with AlphaPoint on both the indexes and Smart Basket framework.
AlphaPoint’s indexes will be available via intraday feeds and updated in real time. The indexes will be rebalanced on a quarterly basis and constituent details, construction, calculation, and rebalancing rules will follow current industry best practices.
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