Nasdaq Crypto Index™ Quarterly Update: The impact of the March 1, 2023 reconstitution and rebalance


The Nasdaq Crypto Index™ (NCI™) was created to offer traders a dependable and dynamic crypto asset benchmark. A key characteristic of the NCI’s™ methodology, designed to make sure the index is suitable for skilled traders, is a quarterly rebalance of the index constituents and its weightings. 

These rebalances, efficient the first enterprise day of March, June, September, and December, be certain that the NCI™ stays an adaptable illustration of the evolving crypto asset class. The newest NCI reconstitution went efficient March 1 at 8pm UTC.

In this most up-to-date rebalance, Filecoin (FIL) and The Sandbox (SAND) had been faraway from the index and no extra crypto property had been added. Bitcoin’s illustration in the index ticked as much as 66.6%, whereas Ethereum’s weighting rose modestly to 29.5%.

Filecoin is a blockchain-based decentralized digital storage community that goals to offer information storage and retrieval by varied community incentives. Its token, FIL, represented 0.24% of the NCI™ as of February 28, 2023[2]. The Sandbox is a metaverse the place gamers can construct, personal, and monetize their gaming experiences on the Ethereum blockchain utilizing the platform’s crypto asset SAND, which represented 0.13% of the NCI™ as of February 28, 20232. FIL and SAND might turn into eligible to reenter the index as market circumstances and curiosity in these property evolves.  

Crypto property should meet strict eligibility standards to be included in the NCI™, together with thresholds for liquidity and market cap. Any eligible asset should have lively tradable markets on no less than two Core Exchanges and be supported by no less than one Core Custodian, as outlined in the NCI methodology.

Overview of asset choice course of:

Revised Core Exchange and Core Custodian necessities of two and one, respectively, grew to become efficient on June 1, 2022. Prior to this alteration, three Core Exchanges and two Core Custodians had been required

Rebalances play a necessary position in making certain that the NCI™ is an correct illustration of the present market surroundings for particular person crypto property. As blockchain applied sciences proceed to rework the world economic system over time, we imagine the NCI’s™ strong methodology will assist traders entry the most developed and promising crypto property which can be main this transformation.

More info on the NCI™ methodology may be discovered here.

An overview of the NCIE may be discovered here.  

[1] The NCI methodology may be seen at

[2] Data supply: on 2/28/23 at finish of day


Nasdaq® is a registered trademark of Nasdaq, Inc. The info contained above is supplied for informational and instructional functions solely, and nothing contained herein needs to be construed as funding recommendation, both on behalf of a specific safety, digital asset, or an general funding technique. Neither Nasdaq, Inc. nor any of its associates makes any suggestion to purchase or promote any safety or digital asset or any illustration about the monetary situation of any firm. Statements concerning Nasdaq-listed corporations or Nasdaq proprietary indexes are usually not ensures of future efficiency. Actual outcomes might differ materially from these expressed or implied. Past efficiency shouldn’t be indicative of future outcomes. Investors ought to undertake their very own due diligence and fastidiously consider corporations earlier than investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

© 2023. Nasdaq, Inc. All Rights Reserved

Source link


Please enter your comment!
Please enter your name here