Financial strategist at Fundstrat Global Advisors Tom Lee has developed five indices on the dynamics of various liquidity in the cryptocurrency, he said in an interview with CNBC.
Created indexes are collectively called Crypto FS FX. They track a total of 630 different cryptocurrencies, which are classified by market capitalization and trading volume in five groups:
– FS Crypto 10 is the top 10 cryptocurrencies by market capitalization and includes a bitcoin, Ethereum, Ripple, Litecoin, DASH, IOTA, Monero, etc.;
– FS Crypto 40 – includes cryptocurrencies, which are indicators of capitalization and liquidity take place from 11 th to 50 th;
– Crypto FS 250 – tracks cryptocurrencies, who is from 51 to 300-th place in terms of capitalization and liquidity and includes such digital currencies as BitcoinDark, a Singular DTV, FirstCoin, etc.;
– FS Crypto 300 – tracks 300 of the most popular and most liquid cryptocurrency;
– FS Crypto Aggregate is 630 cryptocurrency.
The developed algorithm will allow to estimate the proportion of individual crypto-currencies in each of the indexes. The composition of the indices will be reviewed quarterly.
According to Lee, the indexes will perform the same function as the one that performs the S&P 500 to determine the current state of the securities market.
He also expressed confidence that the creation of such indices shows the development of the market and growing interest from institutional investors. Finally, Li pointed out that even 2% of the cryptocurrency allows by 2.29% to increase the profitability of traditional investment securities portfolio primarily consisting of stocks and bonds.
As reported, the US Federal reserve is considering the possibility of licensing cryptocurrency exchanges.
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