FTSE Russell has launched an hourly reference price for digital asset market performance. The product has been created in partnership with Digital Asset Research (DAR), a provider of institutional-grade digital asset research and data. The launch is being described as a step forward in meeting investor needs for accurate price discovery, transparency and consistency in the digital asset market.
As of today, there are 182 blockchain-based benchmark and non-benchmark assets included in the FTSE DAR Reference Price files listed across 12 vetted and 19 Watchlist digital asset exchanges representing approximately $400 billion in market capitalization. This is said to represent over 90% of total digital asset market capitalization.
James Nevin, Managing Director, Head of Data Solutions, Information Services Division at LSEG, commented:
“We are excited to enter the rapidly evolving digital asset market to directly address the concerns of our global investor clients. We have applied the same policy and governance framework we use in our equity and fixed income products, in collaboration with DAR, to the vetting methodology of digital asset exchanges and assets with the goal of setting consistent prices for the investor community.”
FTSE Russell and DAR state that they have worked together to help address current investor challenges in the digital asset space including limited oversight, inconsistent market practices and unreliable issuer pricing.
DAR’s exchange vetting process is said to evaluate over 350 digital asset exchanges on a set of preliminary criteria while eliminating illegitimate, inappropriate, or currently insignificant players.
FTSE Russell said it will work closely with DAR to vet digital asset exchanges on a quarterly basis to ensure it continues to meet the needs of this developing market.
The creation of the reference price was said to be due to growing institutional interest in digital assets.
FTSE Russell launched the FTSE Digital Asset Indicative Index Series in 2019 as a first step in establishing new industry standards for digital assets in consultation with market participants.