CoinShares Equally Weighted Crypto Index (CECI)
Diversified Exposure To the 5 Most Liquid Cryptoassets Captures The Ascendance of Smaller, Upcoming Digital Assets
What is the CECI?
Introduction
The CoinShares Equally Weighted Crypto Index (CECI) has been designed to provide a diversified exposure to the 5 most liquid cryptoassets (as prescribed by the Index Methodology).
The CECI has been developed to express broader exposure to the digital asset class. We believe there are several advantages to an equal weighted index over a market capitalisation index. Evidence suggests that equal weighted indices have historically produced superior returns.
Equal weighting makes an index more diversified, rather than heavily concentrated by a dominant player, this is particularly problematic in the digital asset world where Bitcoin has dominated for so many years.
While equal weighted methodologies can lead to greater volatility and drawdowns, on balance, we believe capturing the ascendance of smaller, upcoming digital assets is more important in the rapidly growing digital asset class.
Primary Objective and Constraints
The CECI is designed with the aim of providing diversified exposure to the alternative asset space. Accordingly, the Index must:
Primary Objective and Constraints
1. Be comprised of a small number of liquid, investable constituent assets
2. Exhibit a relatively stable composition in terms of constituents with asset weights that do not vary dramatically between rebalancing periods, leading to low turnover
3. Be specified in a clear and unambiguous manner to facilitate validation and reproducibility
4. Hold constituent assets on a long basis only
5. Not make use of leverage
For more information please consult the Index Methodology document on this page.
Rebalancing Schedule
A monthly rebalancing frequency is employed. Index constituents are calculated and announced three business days prior to the end of the running month. The rebalancing is employed on the first business day of the following month.
