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Crypto for Advisors: Crypto Indices Explained
Yahoo Financeยท 2025-11-20 16:00
Group 1 - The core idea of the articles emphasizes the importance of index design in the crypto space, highlighting that the methodology behind crypto indices is crucial for institutional adoption and trust [2][3][4] - The construction of a crypto index involves a combination of data engineering and governance design, making it an essential investment framework rather than just a performance tracker [6][7] - The intent behind creating an index determines its focus, whether it is broad market exposure or targeting specific narratives like decentralized finance (DeFi) [7][8] Group 2 - Strong indices implement strict eligibility rules to filter out non-investable assets, ensuring that only reliable and transparent tokens are included [8] - Weighting methodologies in indices reflect market structure, with market-cap approaches often dominated by major cryptocurrencies like Bitcoin and Ether, while alternative weighting methods allow smaller protocols to gain visibility [10]