Overexposed: DeFi indexes aren't as diversified as you think
Research has found overexposure to a few 'blue chip' DeFi tokens is an issue for indexes. New research suggests that indexes based on decentralized finance tokens lack diversification which is less than ideal for advanced investors seeking to mitigate risk.Indexes are a very popular way to get broad exposure to a market without the hassle of researching and buying individual assets. With the explosion in DeFi protocols and related tokens this year, a number of indexes have been launched.Analytics provider DeFi Pulse was one of the first to launch their own index in mid-September at the....
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S&P Dow Jones Indices has made it official: they will launch cryptocurrency indexes in 2021, becoming the latest major finance company to make its inception into the digital asset industry. More than 550 of the top traded coins to be included in the indexes As Reuters reported initially on December 3, 2020, such indexes will measure the performance of over 550 top traded crypto by market cap, including bitcoin, and they will use data from the New York-based company Lukka. According to the statement issued by both companies, S&P’s clients could create customized indexes, among other....
The DPI token’s price has crashed more than 64% in six weeks. BADGER, the governance token of Ethereum-powered Bitcoin yield protocol, BadgerDAO, will be included in Index Coop’s DeFiPulse Index (DPI) token from August.Index Coop announced the news on June 26, noting BADGER’s inclusion would be pushed back by one month due to prioritizing other upgrades.Slight Correction DeFi Pulse Index has added $BADGER to the methodology. However, it will not be included in this month's $DPI rebalance due to the necessity to add support for a wBTC pair to our rebalancing operations.$BADGER will be....
Binance Futures’ DeFi Composite Index has lost half of its value since launching, while TokenSets’ DeFi Pulse Index is down by one-third. On August 28, Binance Futures launched its DeFi Composite Index, a basket of DeFi tokens that initially comprised 27% Chainlink (LINK) and 11% Aave (LEND) alongside nine other prominent DeFi tokens that made up between 6% and 9.5% of the index each. Updated weekly, the index now tracks 19 different crypto assets.However the Binance Futures’ DeFi index has dropped more than 50% from an all-time high of $1,189 on its first day of trading, with the basket....
A Chinese indexes company, Hang Seng Indexes, has launched a new index which tracks the performance of metaverse-related companies in mainland China. The index is calculated and disseminated in real-time at two-second intervals, the company said. Rising Popularity of the Metaverse Hang Seng Indexes Company Limited, an entity that manages and compiles the Hang Seng Family of Indexes, recently announced the Hang Seng China Metaverse Index launch. The new index tracks the performance of mainland Chinese companies involved in metaverse-related businesses. As explained in a statement released....
Digital asset manager Grayscale has launched a new DeFi fund with CoinDesk Indexes, according to a press release. The Grayscale Decentralized Finance (DeFi) Fund will offer its clients exposure to some of the major tokens in the sector. The fund will track the CoinDesk DeFi Index, created on May 10, 2021, to “measure the investable […]