2100News Digital Assets – (Cryptocurrencies and Tokens) Index series
1. INTRODUCTION TO THE 2100NEWS INDEX GUIDES
1.1. 2100NEWS Digital Assets – (Cryptocurrencies and Tokens) Index series
The rapidly evolving Market, with its steady changes, also requires responses that match
the pace of development. The logic behind indexing is simple:
representation. Markets or even individual market sectors (such as large-cap digital
assets can be enormous, including hundreds and even thousands of cryptocurrencies
(tokens and coins). That’s where indexes come in.
1.2. What does an index do?
A professional index will give market participants a quick and concise impression of the
direction of the relevant market segment or asset class. 2100NEWS Digital Assets
Index series, the line of fully independent indexes and benchmarks tracking both
cryptocurrencies and digital tokens.
Digital Assets – Cryptocurrencies indexes are benchmarks for the crypto market. It is
dedicated to the giving insight about the current and past movement of this young
market everyone, who is interested.
1.3. Who uses indexes?
Finally, the fact that crypto markets are ever-changing and open 24 hours a day, seven
days a week. All of this is way too difficult for most traders t
1.4. The index offering
The index offering encompasses the 2100News Overall Index (NWSOI), as well as a
2100News 30 Blue Chip Index (NWS30), 2100News 100 Large Cap Index (NWSL100),
2100News 200 MidCap Index (NWSM200), 2100News 300 SmallCap Index (NWSS300),
2100News 500 Micro Cap Index (NWSMi500), 2100News Bitcoin, Ether Index (NWSBE).
Variations, specifically designed to underlie passive investment products and ensure a
proper balance between diversification and liquidity.
The indexes are owned and administrated by 2100NEWS.
2. CHANGES TO THE GUIDEBOOK
2.1. HISTORY OF CHANGES TO THE 2100NEWS DIGITAL ASSETS –
(CRYPTOCURRENCIES AND TOKENS) INDEX SERIES METHODOLOGY
August 2018: Publication of a complete guidebook
3. GENERAL PRINCIPLES
3.1. INDEX RATIONALE
2100NEWS defines the index rationale as the basis for applying a certain methodology
in order to achieve the index objective. 2100NEWS performs intensive research and may
conduct conversations with market participants and third parties for this purpose. In
every case 2100NEWS discloses the index objective.
3.2. METHODOLOGY REVIEW POLICIES
2100NEWS constantly monitors the execution of the index calculation rules in order to
ensure the validity of the index methodology. 2100NEWS also conducts general
methodology reviews in a periodic and ad-hoc basis, to reflect economic and political
changes and developments in the investment industry.
3.3. INDEX TERMINATION POLICY
For the termination of an index or index family for which, to the knowledge of
2100NEWS, no listed financial products are issued in the market, a press release
notification or e-mail notification to subscribers will be communicated at least three
months before coming into force.
4.1. 2100NEWS GLOBAL DIGITAL ASSETS – (CRYPTOCURRENCIES AND
All coins and tokens with similar characteristics from markets that provide real-time
and historical component and currency pricing form the 2100NEWS global digital assets
The 2100NEWS classification model relies on a rules-based methodology. The two
criteria for the classification of a coin or a token include market capitalization, market
liquidity. The average data are used in order to avoid short-term fluctuations.
4.3. SELECTION CRITERIA
Firstly, digital assets are assessed for possible inclusion into the index based on their
time of launch into the market, market size, liquidity, and other factors. Then, candidate
samples are determined based on the following factors:
(1) Market size of a digital asset;
(2) Trading volume of a digital asset.
After excluding cryptos which do not fulfill the Liquidity rule will the cryptos be ranked
by their market capitalization from highest to lowest. The number of cryptos, obtained
from the rule for the Number of Constituents, with the highest market capitalization will
be taken. Volume minimums are put in place to ensure that any asset in an index has the
appropriate liquidity to be an investable asset.
4.3.1. MARKET CAPITALIZATION SCREENING
4.3.2. LIQUIDITY SCREENING
Liquidity rule: It can happen, that a crypto has a high market capitalization and
therefore shall be part of the Index. But if it is not traded frequently, it can’t be easily
converted to traditional fiat money or other cryptocurrencies. Eligible constituents must pass a liquidity threshold, which is
defined as follows: The daily trading volume for each asset is calculated in units of USD
to take into account combined volumes from all trusted exchanges and in all bases of
5. INDEX CHARACTERISTICS
5.1. MARKET CAPITALIZATION-WEIGHTED INDICES
The Market Capitalization determines the weights of each constituent in Market
5.2. SELECTION LISTS
The selection lists are produced for indexes with a fixed number of constituents in order
to determine replacements for any coin or token deleted from the indexes.
5.3. INDEX REVIEW
To keep up with the latest development of the digital asset markets, all indexes are
reviewed on a regular basis to ensure a transparent and up-to-date index basket.
Buffers are used in periodic reviews to reduce turnover. Based on an index-specific
characteristic, an upper and a lower limit is set around the index target coverage.
During the period review processes liquidity screenings are applied as defined in
chapter 4 (e.g. companies must have a minimum EMA(Volume).
5.6. WEIGHTING FACTOR
Weighting factors are applied in price-weighted indexes. Please consult the 2100NEWS
Index calculation for further details.
5.7. CAPPING FACTORS
5.7.1. WEIGHTING CAP FACTORS
The factor limits the maximum weighting for a digital asset at the time of the review.
The weighting cap factors are used to achieve a diversification and avoid outfitting Prices of Digital Assets.
5.7.2. LIQUIDITY SCALING FACTORS
In the 2100NEWS indexes Liquidity scaling factor is used. The factor is based on the
6. INDEX CALCULATION
The Index is a market index and follows for the derivation the Laspeyres Index. The final index formula is a modification
of the Laspeyres index. All of these calculations are
done in the US Dollar denominated values. Continuity of the index value is maintained
by changing the divisor to keep the index value the same at the moment preceding any
change, and then immediately following any change. The divisor is only regularly edited
at the weekly rebalances.
The starting value of the Index is therefore chosen to be 1000. Whenever the number of
coins of a crypto changes, the Divisor has to be adjusted. This shall ensure that only the
price changes cause the changes in the value of the Index. Therefore, it is ensured that
the Index starts again with the same value as just before the change in the amount of
7. INDEX REBALANCING
All of the 2100NEWS indexes will be rebalanced at 11:00 UTC time on the Friday of each
week. The weekly rebalance will update both, the amount of each asset publicly
available and any additions and deletions from the indexes. There will be no changes
made to the weights and asset counts outside of the weekly rebalances.
A buffer rule is used when determining constituent selection at each rebalances to
reduce turnover of the index.
Any other unique situations, extreme circumstances surrounding the already described
events, or unobtainable asset counts or prices will be handled at the discretion of
The publication period is 24 hours a day, 7 days a week. Published values are in USD.
Published values are rounded to four decimal places. A base value of 1000 is used for the
inception day of the index, i.e., at the market close of August 2, 2018
8.1. This Guide Is Informational, Impressional and Not a Solicitation
No information on this guide constitutes a promotion, recommendation, inducement,
offer or solicitation to:
8.1.1. Purchase or sell any assets,
8.1.2. Transact any other business,
8.1.3. Enter into any other legal transactions.
8.2. No Advisory Relationship
2100News is not an investment advisor, and make no representation regarding the
advisability of investing in any investment fund or other vehicles. This guide should not
be constructed to provide advice of any kind, including, but not limited to, tax and legal.
8.3. No Warranties
The accuracy and/or completeness of any 2100News index, any data included therein,
or any data from which it is based is not guaranteed by 2100News, and it shall have no
liability for any errors, omissions, or interruptions therein.
8.4. Limitation of Liability
2100News shall not be liable for any claims or losses of any nature in connection with
the use of misuse of the information in this guide, including but not limited to, lost
profits or punitive or consequential damages, even if 2100News has been advised of the
possibility of same.
8.5. Linked Products
2100News is compensated in retribution for licensing its indexes to third parties for the
creation of investment funds or other vehicles. 2100News is not responsible for the
information provided by these parties or for anything that they provide.