Brave New Coin (BNC) and BTSE have announced the launch of a new institutional-level Composite Index to track real-time market performance for BTC, ETH and LTC.
Brave New Coin is a provider of high-value crypto data for the markets, while BTSE is an exchange of futures on several cryptocurrencies, such as bitcoin, ethereum and litecoin.
The index, called the BNC-BTSE Composite Index (BBCX), has a refresh rate of less than one second and is one of the first in the industry to track a basket of cryptocurrencies from multiple price sources.
From a technical point of view, BBCX will follow the performance of a basket of cryptocurrencies with large capitalisation thanks to the data of the trading books from five exchanges, namely Bitstamp, Bitfinex, Kraken, Coinbase-Pro and BTSE.
The market capitalisation of the assets, expressed in USD, will also be used to determine the weights of each cryptocurrency within the index. The asset weighting will be fixed at the beginning of each quarter and will remain constant throughout the quarter. For example, for the current quarter, the asset weighting has been fixed as follows: 60% BTC, 33.25% ETH; and 6.75% LTC.
Brave New Coin CEO and founder Fran Strajnar said:
“As one of the first indexes in the world to track an array of crypto assets across a number of exchanges, this is not only a key milestone for BNC, as we continue to be a go-to source for real-time, accurate data but for the industry as a whole. Joining forces with BTSE, an industry leader to equip traders, investors, and analysts throughout the industry with the right tools to make informed and educated decisions, is another step forward to an advanced industry”.
BTSE’s Chief Product Officer, Brian Wong, added:
“BNC’s and BTSE’s index futures enable crypto traders to speculate on the direction of the market as a whole. They provide portfolio managers an effective tool to hedge out beta risk”.