Index provider, Compass has launched a DeFi Index. This, as institutional interest in digital assets, grows.
Leading Swiss financial technology and crypto index firm, Compass Financial Technology (Compass), on the 22nd of February, 2022, announced the launch of a new Decentralized Finance (DeFi) based index. The new Compass Crypto Basket Fundamental DeFi Index – or CCBFDEFI for short – offers a reliable benchmark of one of the fastest-growing digital asset sectors, for institutional consumption.
Compass, which provides indices that track over $5 billion in assets, designed the new CCBFDEFI to give institutional investors broad exposure to the DeFi sector. The index tracks a total of 10 leading DeFi tokens, which are weighted through a novel mechanism that balances monthly.
The CCBFDEFI index is available on Bloomberg and Refinitiv and is available to be licensed by financial product issuers. The index, which complies with EU Benchmark Regulations, is the first digital asset-based index to introduce a fundamental weighting system that weighs token liquidity and revenue produced by DeFi protocols. This occurs by way of the use of on-chain data to track weighting against users.
As mentioned above, the CCBFDEFI is now live on Bloomberg and Refinitiv under market tickers, CCBFDEFI and.CCBFDEFI respectively. The index enables institutions to track Defi markets and offers smart exposure to the sector.
Compass developed sophisticated commodity-oriented indices in the 2000s and is now seeing similar growth in demand for crypto-related financial products. The CCBFDEFI is the firm’s latest digital asset-based index, since it first launched EU Benchmark regulated indices for Exchange Traded Product issuers back in 2018.
“Appetite for digital asset exposure through institutional quality solutions is growing significantly. Incorporating fundamental metrics in index creation offers investors the possibility to allocate in the most efficient DeFi tokens based on rational economic indicators.” – Guillaume Le Fur, Compass CEO
