The CAMCrypto30 Index is here, which has a number of advantages, helping cryptocurrencies to develope into a new asset class.
First, it would make comparisons with other asset classes more straightforward.
Second, it would incorporate diversification effects, if any, comparable to for instance bond or equity indices
Third, it would make it possible to measure the performance of bitcoin related funds, bitcoin traders or bitcoin investment advice.
Fourth, derivatives could be created using the benchmark.
Fifth, communication on cryptocurrencies as an asset class becomes more straightforward.
That said, here too the massive volatility that is characteristic to cryptocurrencies, could complicate things. For instance concerning relative weights of the underlying currencies and the rebalancing. Especially after the ten biggest ‘coins’ things tend to change really, really fast. For investors aiming to follow this benchmark this may prove time-consuming and above all costly!
Read the article on the Cryptocurrency Benchmark here
More information on The CAMCrypto30 Index here