How it Works, What it Means for Investors

CryptoWire, the global super crypto app and a private business unit of TickerPlant, recently launched India’s first cryptocurrency index IC15. It will measure the performance of the 15 most widely traded cryptocurrencies listed on the world’s leading cryptocurrency exchanges by market capitalization.

How will IC15 work?

With the emergence of cryptocurrency as an asset class, CryptoWire has come up with a rule-based broad market index by market capitalization. CryptoWire has formed an Index Governance Committee that includes industry experts, industry practitioners, and academics who will select cryptocurrencies from the top 400 coins by market cap. The cryptocurrency must have traded on at least 90% of the days during the review period and be among the 100 most liquid cryptocurrencies by turnover to be eligible for the index. The eligible cryptocurrency must also be in the top 50 by market cap. The committee will select the 15 best cryptocurrencies.

The value of the index is equal to the total market capitalization of the index basket divided by the divisor of the index and then multiplied by the base value of 10,000. On the base date, the divisor is calculated based on the traded market capitalization of all components of the index. The denominator of the index is normalized during each rebalancing period by multiplying it by the normalization factor.

The indicator will be monitored, reviewed and rebalanced during each quarter. The deadline for the review period should be the 15th of March, June, September and December

IC15 cipher indicator: how it will help

The cryptocurrency index will help create index-linked products such as ETFs and crypto funds, CryptoWire claims. It will serve as a performance benchmark for fund managers. The IC15 Index is a benchmark for the underlying crypto market with a diverse representation of overall market sentiment. Moreover, it will provide an easy solution to owning a diversified portfolio. For investors, this unique status indicator will help to trade derivatives efficiently in the cryptocurrency trading market.

“CryptoWire is in a position to emerge as an industry partner to disseminate knowledge, research and information and help participants make informed decisions. IC15 represents another step toward that goal,” said Gigis Sunagara, Managing Director and CEO of CryptoWire.

The base value of the IC15 index is set at 10,000 and the base date is April 1, 2018. This simply means that the index is up 615 percent in absolute terms to 71,475.48 as of December 31, 2021. The index, with 51.57, while Ethereum carries a weighting 25.79 on the indicator.

Aside from Binance Coin (5.03 weight), no other coin holds more than 5 weights on the index.

IC15: What is there for crypto enthusiasts?

Thus, an index that captures more than 80 percent of the market movement is an essential market tracking and evaluation tool for making and enhancing transparent decisions. The IC15 Index enables crypto enthusiasts, investors and investment managers to monitor the performance of cryptocurrencies in global markets. “With the launch of India’s first IC15 crypto index, we intend to complete the cycle of knowledge of the entire crypto and blockchain ecosystem. This will not only drive the ‘learning before earning’ initiative, but also serve the industry with another powerful intervention.”

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