Kaiko, a cryptocurrency data provider, announced today the launch of its crypto-asset pricing and valuation service. The new tool aims to empower users to build customizable single-asset and multi-asset price feeds for NAV calculations, portfolio valuation, asset allocation strategies, and indices.
The new pricing and valuation service comes with the following features:
- Custom Exchange Selection — Input a selection of trustworthy exchanges or opt to use data from all exchanges.
- Fixing Time-Frequency — Receive end-of-day and intraday price feeds at granularities ranging from 1 second to 1 day.
- Asset Weighting — For multi-asset price feeds, select which relative weight to assign each crypto asset depending on your portfolio allocation.
- Aggregation Methodology — The service offers customizable features such as outlier management and symmetric time windowing around the fixing price.
- Price Denomination — Choose to receive data denominated in USD, EUR, GBP, or 20+ fiat currencies.
Once features are specified, the data output includes a composite price for each fixing time; with reference price, contribution, and weight for each constituent crypto-asset used in the calculation.
“This service is uniquely designed to give asset managers, financial product issuers, auditors, index composers, and fund managers an intuitive toolkit to create and track their own composite prices. Our flexible product features give the ability to customize the data sources, frequency, time windowing, outlier management, and asset weighting that matches any pricing and valuation use case. Due to the inherent difficulties associated with market data in the cryptocurrency industry, we identified a pressing need among financial professionals for reliable, customizable, and auditable data feeds.”
– The Kaiko Team
Example Use-Case: 5-Asset Portfolio Valuation
This new data service is optimized for NAV calculations and can be leveraged by crypto-asset funds, asset managers, and any financial professional requiring single-asset or multi-asset valuation.
The below example demonstrates how to build a custom price feed for a 5-asset portfolio:
- Customize price feeds based on allocation strategy. Single asset price feeds can also be built using an asset weighting of “1”.
- Track performance over time. For each time interval and % of outlier filtering, the data service returns a composite price built on a fixed base value of 100 fiat currency units. As markets change over time, the subsequent composite prices will reflect how each constituent asset performs.
- Fine-tune allocation strategies. This data service also returns the contribution price for each individual asset, allowing users to track constituent performance over time.
- Benchmark performance to other financial indices.
All of Kaiko’s customized price feeds are available both live and historically This enables users to backtest portfolio strategies or consume data actively. Moreover, clients can specify features they require directly through Kaiko’s REST API. Kaiko can also generate historical CSV files with features specified.