Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313175 
Year of Publication: 
2022
Citation: 
[Journal:] Digital Finance [ISSN:] 2524-6186 [Volume:] 4 [Issue:] 2 [Publisher:] Springer International Publishing [Place:] Cham [Year:] 2022 [Pages:] 149-167
Publisher: 
Springer International Publishing, Cham
Abstract: 
Several cryptocurrency (CC) indices track the dynamics of the rising CC sector, and soon ETFs will be issued on them. We conduct a qualitative and quantitative evaluation of the currently existing CC indices. As the CC sector is not yet consolidated, index issuers face the challenge of tracking the dynamics of a fast-growing sector that is under continuous transformation. We propose several criteria and various measures to compare the indices under review. Major differences between the indices lie in their weighting schemes, their coverage of CCs and the number of constituents, the level of transparency, and thus, their accuracy in mapping the dynamics of the CC sector. Our analysis reveals that simple market cap-weighted indices outperform their competitors. Interestingly, increasing the number of constituents does not automatically lead to a better fit of the CC sector. All codes are available on .
Subjects: 
Cryptocurrency
Index
Market dynamics
Bitcoin
JEL: 
C43
G19
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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