Indexes

A

Adjusted Free Float Market Capitalization

Market Capitalization of a crypto asset that is adjusted to reflect adjusted free float supply. This better reflects the market capitalization of a crypto asset that is available to market participants for purchase and sale in publicly traded markets.

Adjusted Free Float Supply

The adjusted on-chain supply of a crypto asset, to reflect the proportion of crypto asset native tokens that is outstanding and readily available to market participants for purchase and sale in publicly traded markets. This includes removing: company, founding team or investor units that have been formally restricted (through legal or smart contracts); burnt units that are still visible on chain; or provably lost units (if >0.25% of supply).

Alternatively Weighted Indexes

Indexes whose constituents are weighted using alternative methodologies other than market capitalization. Such indexes are designed to provide return profiles that reflect different investment strategies with alternate diversification and/or risk objectives. Coin Metrics administers and manages alternatively weighted indexes that include:
Factor (or Smart Beta) Indexes Index constituents are selected and weighted according to popular investment strategies that hope to capture return profiles that differ from traditional market capitalization weighted indexes. Such factors may include Value, Volatility and Momentum.
Equally Weighted The same weight is applied to all Index constituents regardless of their market capitalization.
Fundamental Indexes Index constituents are selected and weighted according to on-chain measures of economic activity, these may include: hash rate, transaction value, transaction volume, staking yield or network value distribution.

Announcement Date

The date on which results of index / methodology review are disseminated publicly.

As of the Close of Date

The "end of day" date as of which changes were implemented to CMBI Products / Methodologies.

B

Base Date of the Index

The date where an indexes base value was set. This also represents the date that an indexes performance is measured against.

Base Value

The initial value (index level) of an index.

Basis Point

A unit of measurement, equal to 1/100th of 1% (0.01%)

Benchmark

The Financial Benchmarks Consultation Report released by IOSCO in January 2013 defined a Benchmark as prices, rates, indexes or figures that are:
  • Made available to users, whether free of charge or on payment;
  • Calculated periodically, entirely or partially by the application of a formula or another method of calculation to, or an assessment of the value of, one or more underlying assets, prices or certain other data, including estimated prices, rates or other values, or surveys; and
  • Used for reference for purposes that include one or more of the following: i) determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments; ii) determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument; iii) and/or measuring the performance of a financial instrument.

Benchmark Administration

The Financial Benchmarks Consultation Report released by IOSCO in January 2013 defines the Benchmark Administration as the stages and processes involved in the production and dissemination of a Benchmark. This includes:
  • Collecting, analyzing and/or processing information or expressions of opinion for the purposes of the determination of a Benchmark;
  • Determining a Benchmark through the application of a formula or another method of calculating the information or expressions of opinions provided for that purpose; and
  • Dissemination to users, including any review, adjustment and modification to this process.

Benchmark Administrator

The organization which controls the design, maintenance and reporting of the Benchmark administration process. The Benchmark Administrator does not necessarily own the methodology relating to the Benchmark it is administering. In particular, the Benchmark Administrator is responsible for:
  • The calculation of the Benchmark;
  • Determining and applying the Benchmark Methodology; and
  • Disseminating the Benchmark

Buffer Zone

A buffer zone is applied to Market Capitalization Weighted Indexes around the constituent thresholds used to create the large, mid and small capitalization indexes. This is achieved through applying lower thresholds for previous index constituents are applied during the constituent selection process. The purpose of a buffer zone is to consider previous constituents at rebalancing time in order to limit unnecessary turnover. The specific buffer zone of each multi asset index is defined in its respective methodology.

C

Constituent

An individual crypto asset that is a member of any particular index.

Corporate Event

Unlike traditional markets, in many cases crypto assets are managed in a distributed fashion with no fixed, defined or centralized governance. As such, a Corporate Event arises as a result of particular members of a crypto asset’s community announcing intentions to take action that could result in significant changes to the crypto asset. The subsequent actions may or may not eventuate depending on the level of community support.
Corporate Events often do not have a defined ex-date. Examples include forks, changes to consensus, changes to monetary policy. Treatment of Corporate Events is set out in index methodology documents.

Crypto Asset Index Methodologies

Methodology documentation containing the design, construction, maintenance and policy rules for a CMBI Crypto Asset Index. Any index family can be governed by the one index methodology.

Crypto Asset Market

Any trade pair that can be found on a crypto asset exchange.

D

Divisor

The component of the index calculation process that is adjusted during rebalances to account for the impact of:
  • Corporate Events
  • Index constituent changes
  • Index weighting changes
  • Changes to constituent supply data
Adjustments to the Divisor ensure that index values (levels) remain comparable over time.

E

Early Inclusion

Addition of a crypto asset to a CMBI product outside the regular index rebalancing process.

Effective Date

The date where, from the “open of the day”, changes to a CMBI product are implemented.

Expected 10-Year Market Capitalization

The sum USD value of all native units counting the current supply and including those that are expected to be issued over the next 10 years if the current known issuance schedule is followed.

Expected 10-Year Future Supply

The sum of all native units counting current supply and including all those expected to be issued over the next 10 years from that day if the current known continuous issuance schedule is followed. Future expected hard-forks that will change the continuous issuance are not considered until the day they are activated/enforced.

F

Full Market Capitalization

Aggregated market capitalization of all listed and unlisted crypto asset native tokens.

I

Index Rebase

Changes to the base date and base value of an index.

Interim Constituents

Constituents that are included in an index as the result of certain corporate events.

Intraday Pricing

Price movements throughout the day.

Investment Universe

Universe of eligible crypto assets.

IOSCO

The Internal Organization of Securities Commission.

IOSCO Principles

The Principles for Financial Benchmarks report released by the Board of IOSCO in July 2013.

L

Late Announcement

Index email announcement distributed to CMBI customers in cases where index values (levels) are postponed due to corporate events, exchange related events or internal calculation issues.

M

Market Coverage

Proportion of the investment universe that is covered by an indexes constituents.

Methodology

The set of documents that describes the design, calculation process, determination and policies of an index. For Example, for the CMBI Bitcoin Index this includes the CMBI Single Asset Series Methodology, the CMBI Policy Documentation, the CM Real-Time Reference Rate Methodology and the CM Reference Rate Methodology.

P

Parent Index

Indexes for which the investment universe of another index is derived.

R

Real-Time

Information available instantaneously, without delay.

Reference Day

The day on which index rebalance data is collected. For CMBI Market Cap Weighted Indexes this is the second last business day of each month.

T

Total Return Adjustment

Factor Multiplier applied to price return indexes from the ex-date of a corporate event to reflect the crediting of value from the corporate event.

Total Return Index

An index whose value (level) and performance reflects the reinvesting of either native token credits or newly issued tokens resulting from the corporate actions of a crypto asset on the ex-date. An example of this is reinvestment of staking credits or the crediting of a forked token.
Last modified 2mo ago