Primers
Introduction
The creation of Bitcoin more than 15 years ago launched an entirely new industry that includes thousands of projects representing over $2 trillion in market capitalization. 1 The broad application of blockchain technologies has sparked an explosion of crypto assets that are transforming industries and accelerating the digitalization of our lives.
As this market has evolved, the need for reliable benchmarks has become critical, something that is becoming increasingly important as more institutional and professional investors gain exposure to this asset class through regulated products. The need to connect investors with an institutional-quality benchmark is why Nasdaq, in partnership with Hashdex, created the Nasdaq Crypto IndexTM (NCITM).
The Metodology
The ultimate goal of the NCITM is to provide investors exposure to the growth of the crypto ecosystem as a whole, through the most promising and mature crypto assets that are supported by institutional-grade service providers. There are several aspects of the NCITM that were considered to guarantee its adaptability over time. This is because it is difficult to predict today which crypto assets will be the most relevant in the future.
The high standard of the NCI’sTM eligibility criteria is a key factor that sets this benchmark apart. Two entities are central to this selection criteria: core exchanges and core custodians.