Grayscale Investments Partners with FTSE Russell to Roll Out Crypto Sector Index Series
Today, Grayscale Investments announced a partnership with the UK-based global index provider FTSE Russell to introduce the FTSE Grayscale Crypto Sector Index Series.
The index hopes to bring clarity to the fast-growing, yet often misunderstood crypto asset market by offering a structured framework for measuring the performance of different digital assets.
The FTSE Grayscale Crypto Sectors Index Series have been classified into five distinct categories: Currencies, Smart Contract Platforms, Financials, Consumer and Culture, and Utilities and Services.
Each sector provides a lens through which investors can better comprehend the cryptocurrency market. Grayscale Investments and FTSE Russell plan to reassess these sectors quarterly to keep pace with the dynamic crypto asset class.
"Investors have increasingly expressed interest in diversifying beyond crypto's largest assets - Bitcoin and Ethereum - and many look to Grayscale to better understand this robust, evolving asset class," CEO Michael Sonnenshein told Reuters.
In traditional finance, currencies serve three main functions: they are a store of value, a medium of exchange, and a unit of account. Similarly, the Currencies sector in the index focuses on crypto assets that perform these functions, such as Bitcoin, Litecoin, and Ripple.
Smart Contract Platforms, a key part of the crypto sector, have been gaining attention since Ethereum's launch in 2015. These platforms have expanded the range of possibilities within the cryptocurrency market. They serve as the foundation for decentralized applications, which can range from decentralized finance (DeFi) platforms like Uniswap to gaming environments like The Sandbox.
Smart contract platforms offer an edge against centralization,
Read more on cryptonews.com
