What is IC15 index?
IC-15, India’s first global cryptocurrency index, is a rule-based broad market index that measures the performance of the world’s most frequently traded liquid cryptocurrencies. The index will assist crypto enthusiasts and participants in tracking the performance of cryptocurrencies on worldwide exchanges.
The index’s base value is set at 10,000, and the base date is April 1, 2018.
How does the IC-15 index work?
The IC-15 will represent the top 15 most traded cryptocurrencies listed on the world’s top crypto exchanges. The purpose of the IC15 is to educate investors about index-related products such as crypto funds and exchange-traded funds (ETFs). A cryptocurrency exchange-traded fund (ETF) is a fund that tracks the performance of one or more digital currencies. The price of crypto ETFs changes as a result of buying and selling activities. Crypto ETFs are also like stocks that are traded on a daily basis.
In addition, the index will include data on crypto mining as well as the overall performance of the crypto market. While its major purpose will be education, it will also give diversification options for investors interested in other crypto blockchains and tokens.
Who will choose those top 15 cryptocurrencies?
CryptoWire has organised an Index Governance Committee, which will comprise crypto specialists and experienced professionals, to govern the IC-15 index. The committee will choose 15 cryptocurrencies from the top 400 by market capitalization.
Which types of cryptocurrencies will be included in the IC 15 index?
There are certain conditions that cryptocurrencies have to meet in order to be included in the IC-15 index.
- To be listed on the index, a cryptocurrency must trade on at least 90 per cent of the trading days during the review period.
- During the preceding month, the currency should have remained in the top 50 in terms of circulating market capitalization.
Because IC-15 is a pre-weighted index, each cryptocurrency will be assigned a weightage based on its price per token.
The weightage in the case of IC15 are as follows:
- Bitcoin – 51.57 percent
- Ethereum – 25.79 percent
- Binance Coin – 5.03 percent
- Other Altcoins – rest, each with a weightage of no more than 5 percent
On a quarterly basis, the index will be regularly checked and analysed for review and rebalancing. In the months of March, June, September, and December, the cut-off for reviewing has already been established on the 15th calendar day.
