The first EU Benchmark Regulations compliant index that combines cryptocurrencies and gold is live on Bloomberg and Refinitiv.
We are pleased to announce our partnership with CoinShares as an official data provider for their Gold and Cryptoassets Index (CGCI), the first EU Benchmark Regulations (EU BMR) compliant index for the digital asset industry. The low-volatility index combines digital assets and gold and is designed to provide exposure to cryptoassets while improving returns.
The development of the CGCI resulted from research conducted between CoinShares and Imperial College London, published in 2019, identifying that the pairing of gold and cryptoassets delivers a risk and return profile that is superior to holding either alone. While there are many existing cryptoasset indices offering significant exposure to the crypto industry, the CGCI is the first of its kind to combine gold and cryptoassets. The index was built in response to the limited risk diversification of many existing indices, and is designed for traditional financial actors interested in less volatile cryptoasset exposure.
The calculation of the index relies on Kaiko cryptocurrency market data along with Messari’s supply data. As a data provider for institutional investors, we are pleased to be a part of this index, which was designed with professional investors in mind.
Ultimately, the CGCI will allow a wider range of investors to participate in cryptocurrency markets with minimal risk and less extreme volatility. The construction of this index combines the unique characteristics of the two asset classes — high volatility of crypto and low volatility of gold — and the lack of correlation between the two.
Kaiko CEO Ambre Soubiran said, “We believe that investor risk can be better managed through access to high-quality data. This conviction matches the ambitions of CoinShare’s CGCI index, and we are pleased to serve as an official data provider.”
Michael Petch, Chair of the Index Committee, commented, “The CGCI represents a strong step forward in index creation and risk management for the digital asset industry. By employing reliable and robust market data from Kaiko, along with sophisticated research and development, CoinShares was able to create an EU Benchmark Regulations compliant index –one of the first of its kind.”
The index is licensable and can be tracked by CoinShares. Investors can gain exposure through CoinShares Capital Markets. The index is distributed on Bloomberg (ticker: COINCGCI) and Refinitiv (ticker: .COINCGCI).
Founded in 2014, Kaiko is a market data provider in the blockchain-based digital assets space, providing institutional investors and market participants with enterprise-grade data infrastructure. We collect, normalize, store, and distribute digital assets market data via a livestream WebSocket, REST API, and cloud-based flat file (.csv) Data Feed, to which clients connect to build data-driven applications. Our raw trade data, order books, and aggregates cover 20,000+ currency pairs across 85+ exchanges, with new markets added every day. With over five years of historical data, Kaiko provides the most extensive digital asset datasets in the industry. Kaiko caters for the market data needs of professional investors, asset managers, funds, researchers, regulators, third-party platforms and exchanges.
About CoinShares Group
At CoinShares, our mission is to expand access to the digital asset ecosystem while serving as trusted partners for our clients. We believe that Bitcoin and blockchain networks are landmark innovations that will fundamentally reshape the global financial system, and that investors should be able to participate in this transformation. We achieve this mission by providing institutional-grade investments products and services for digital asset investors. The CoinShares Group is a pioneer in digital asset investing and manages hundreds of millions in assets on behalf of a global investor base, with offices in Jersey, Stockholm, London, and New York.
Kaiko Data Powers the CoinShares Gold and Cryptoasset Index was originally published in Kaiko Data on Medium, where people are continuing the conversation by highlighting and responding to this story.