The Coinbase 50 Index (COIN50) tracks the performance of the 50 largest and most liquid digital assets by market cap. The index applies a fundamental and market eligibility criteria screen to ensure investability.
The objective of the Coinbase 50 Index is to track the performance of a market-capitalization-weighted basket of the largest assets that meet fundamental and market eligibility criteria. Component weights are capped at 50%.
Rebalancing
Quarterly.
The gold standard in crypto indexing
Evolving asset class
Bitcoin continues to dominate, especially in bear markets, but its overall market prominence is gradually evolving. As crypto assets beyond bitcoin continue to assert influence in market dynamics, the need to shift toward a more encompassing benchmark is compelling.
The right number of tokens
The rapid increase in token supply presents investors with a wide array of choices, yet only a small sub-set are mature and investible. Furthermore, concentration of the top 50 coins is an issue.
A dynamic solution
Rapid growth and high volatility within digital assets makes a “buy and hold” strategy suboptimal. COIN50 constantly adapts and strategically rebalances to focus on diversification designed to IOSCO principles and BMR compliance.
The Coinbase and MarketVector strategic partnership combines Coinbase's extensive knowledge and experience in Web3 and crypto with MarketVector's deep expertise in index development. This collaboration empowers clients and third parties with access to innovative digital asset indexes, enhancing transparency and reliability in the crypto market. Furthermore, this partnership aims to facilitate the creation of new indexes, provide comprehensive market insights, and support investors in navigating the dynamic digital asset landscape. Together, Coinbase and MarketVector Indexes are committed to delivering exceptional value and advancing the future of digital finance.
Methodology
Fundamental Screening Criteria
Blockchain Architecture: Graded for non-native tokens
Token Economics: Ensures independent value and market integrity ➢ Non-Pegged Assets: Tokens pegged to other digital assets, fiat currencies, groups of currencies, or hard assets are disallowed to avoid external valuation dependencies ➢ Free-Float: The token must have the majority of its supply in public circulation, which supports transparency and reduces the risk of market manipulation ➢ Non-Exchange Coins: To ensure transparency and decentralization, tokens created by a centralized party are excluded
Security: Thoroughly assessed beyond standard clearances ➢ Security Vulnerabilities: To focus on long-term stability, assets with known ongoing fatal bugs or significant risks are excluded; project’s response to past crisis events are closely evaluated to verify robust security practices. ➢ External Report Integration: To offer diverse evaluations that can spot risks and opportunities that our internal analyses might miss:
Key benefits & highlights
Provides a broad representative of the crypto market, capturing rising stars earlier than more concentrated indexes
Provides greater diversification within each theme (including more tokens that are not just layer 1)
Focusing on the top 50 digital assets for reliability and liquidity.
Employs a dynamic and adaptable process to evolve with the asset class.
Designed to standards and best practices under OPSCP Principles and EU BMR regulation.
A license agreement is required to use MarketVector indexes, index data or trademarks for various commercial purpose. These include research and analysis, as well as the creation, introduction, promotion, or marketing of financial products such as exchange-traded products, mutual funds, certificates, derivatives, swaps, bonds, or OTC products connected to or derived from MarketVectorTM Indexes.
We can help you learn more about acquiring a suitable license for your needs.
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