Why do you need STIPS20 index?
Since the first cryptocurrency, bitcoin (BTC), appeared in 2009, the digital tokens market began to rise. Soon after the first altcoin appeared in 2011, it became apparent that the financial market will face a new category of previously unknown assets that are aimed at filling their places. The exponential growth of new cryptocurrencies and market capitalization led to the rise of first funds specialized in investments in crypto tokens.
The main purpose of the cryptocurrency index compilation is to create an indicator that would help the private investors, cryptocurrency funds and traders to describe a general trend and “speed” of digital tokens traffic. For the funds accumulating the investors’ money STIPS20 may become a benchmark for purchasing the most fluid tokens and allow to directly invest in index and receive market return. The investors may compare the profit investment ratio with an average cryptocurrency market dynamics to assess whether it is efficient and reasonable to choose one fund or another.
Our index applies the world practice to compile S&P 500 index based on the maximum tokens capitalization to ensure easiness, objectivity and transparency for all the parties involved: investors, funds, managers, mass media, etc.
– is the market capitalization of crypto i at point t .
– is the market capitalization of crypto i at 5 January 2014.
l – is the range from 1 to 20 of the most capitalize crypto.
Delta – is the ratio of the sum of the capitalizations of the 20 most significant crypto-currencies in terms of capitalization and trading volume before the rebalancing of the index and after.