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