Cryptowire Launches First Indian Crypto Index Fund

Cryptowire launches India’s first cryptocurrency index at a time when regulations are being discussed in Parliament.

Cryptowire, a Ticker Plant unit, has launched the first Indian cryptocurrency index. The index, called IC15, will monitor the world’s top 15 cryptocurrencies listed on global exchanges.

Cryptowire believes that the index will help create crypto ETFs and funds and believes it will contribute to research. They also hope that it will increase awareness of the cryptocurrency and blockchain ecosystem and provide solutions for those who wish to diversify their investment in cryptocurrencies. Jigish Sonagara, who is the Managing Director and CEO of Cryptowire, said, “We want all participants to utilize, to the fullest, this research-oriented, technology-powered opportunity for tracking the market,” he added.

How index will be calculated

The index value will be calculated by taking the total of the circulating market capitalization of the Index Basket divided by the Index Divisor, multiplied by the base value of 10000. The base date is April 1, 2018. The index is sitting at 71475.48 as of Dec. 31, 2021.

The index will be monitored, reviewed, and rebalanced every quarter and will be managed by a committee of domain experts, industry practitioners, and academicians. The Index Divisor is multiplied by a normalization factor during the rebalancing period.

A cryptocurrency needs to trade for a minimum of 90% of the trading days during the review period. It should also remain in the top 50 in terms of circulating market capitalization the month before. The four leading cryptocurrencies on the index are BTC, ETH, BNB, and SOL, followed by Cardano, XRP, Terra, Avalanche, Polkadot, Dogecoin, SHIBA INU, Uniswap, Litecoin, Chainlink, and Bitcoin Cash. The index does not include any stablecoins, such as USD and Tether. The base value of the index is 10000.

Uncertain time as bill is debated in Parliament

The launch of this crypto index comes at a time when regulation around cryptocurrency is under review by the Indian Parliament. BeInCrypto recently reported that the Securities and Exchange Board of India may be granted oversight over the crypto industry. Chainalysis data from October 2021 suggests that through June 2021, the crypto market grew 641% year-on-year.

There are several cryptocurrency indices globally. Standard and Poor have the S&P Cryptocurrency LargeCap Ex-MegaCap Index, the S&P Cryptocurrency Broad Digital Market Index, and the S&P Bitcoin Index, amongst others. Bloomberg has the Bloomberg Galaxy Crypto Index (BGCI), and the Bloomberg Galaxy DeFi Index.

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