CoinShares, a company focusing on connecting traditional and digital finance, has already officially launched the new CGCI index.
The CoinShares Gold and Crypto Assets Index is the first index to comply with the EU Benchmark Regulation (EU BMR) for this type of combination and is now available on the Bloomberg Terminals and Refinitive servers.
The aim of the CGCI index was to achieve minimum operating costs and to provide risk-managed exposure for crypto assets.
“The unique construction of the index leverages the characteristics of two asset classes –the high volatility of crypto assets, the low volatility of gold, and the lack of correlation between the two.”
Daniel Masters, Executive Chairman of CoinShares said:
“Robustly researched and documented index products were the catalyst for institutional adoption of commodities in the late ‘90’s through the advent of the Goldman Sachs Commodity Index. This crypto and gold index aims to do the same, by using academic research and its benchmark regulated status to pass muster with even the most stringent investment committees.”
Academic research into the gold and crypto assets combination index was conducted with the support of Imperial College London, and the result was a better return profile as a separate holding of only gold or digital assets.
Professor Will Knottenbelt, Director of the Imperial College Centre for Cryptocurrency Research and Engineering, said:
“The CGCI is the product of nearly 2 years of research, development and experimentation conducted by Imperial in close collaboration with CoinShares.”
For the past 7 years, CoinShares has worked on the large-scale construction of innovative, regulated, institutional products and services that are supported by extensive research.