Fundstrat has Added Five New Indexes to Give Crypto Investors More Options
More Indexes in the Crypto Markets
Currently the world has more than 1,500 tokens and Fundstrat Global has come up with five additional price indexes to help the investors have more ways to customize. The five gauges will be based on Platforms, Privacy, Commodities, Exchanges and Stablecoins which include 75 percent of the current crypto market cap. In the market commodity tokens take the largest share with 47 percent simply because the index components include Bitcoin, Litecoin, Zcash, Monero and Bitcoin Cash.
All the potential investors may want to go through the indexes before joining because they can get adequate diversification. When it comes to the privacy index, it has hour components with the Stablecoin having only two with 99 percent weight in Tether and 1 percent in DAI.
Fundstrat has remained very optimistic on the long-term success of Bitcoin which is currently the largest and most used digital currency. According to a note written by strategists Thomas Lee, Sam Doctor and Robert Sluymer: “Commodity tokens are on ramps for institutional inflows in our view. This is because of the expanding options for accessibility. More to that commodity tokens face less risks of regulation as compared to other tokens at the moment.”
Fundstrat does on to cite risks associated to regulations as excessively prices into platform tokens as the main rationale behind the creation of the new benchmarks. However, the firm had previously said that it had chosen indexes based on size. They have however said that they will be creating additional sector gauges because the cryptocurrency sector is continuing to grow.
They also estimate that more coins will be added to the market in the new future. The growth of this market requires a lot of caution and that’s why they will not stop adding more indexes. Fundstrat has promised to keep monitoring the market in addition to educating prospective investors.