MSCI Launches 3 New Digital Assets Indexes: MSCI Global Digital Assets Indexes, ex Proof-of-work Index & Smart Contract Index
10th November 2022 | Hong Kong
MSCI, a leading provider of investment tools & services, has launched 3 new digital assets indexes, MSCI Global Digital Assets Indexes, MSCI Global Digital Assets ex Proof-of-work Index and MSCI Global Digital Assets Smart Contract Index. The 3 digital assets will respectively track the performance of the largest digital assets by market capitalization; digital assets that utilize ex-proof-of-work blockchain consensus mechanisms; and digital assets associated with technology platforms supporting smart- contracts. More info below:
“ MSCI Launches 3 New Digital Assets Indexes: MSCI Global Digital Assets Indexes, ex Proof-of-work Index & Smart Contract Index “
Stephane Mattatia, Head of Thematic Indexes at MSCI: “The digital assets ecosystem is evolving rapidly along with investor demand for tools and solutions to help navigate this new asset class. Global investors are looking for greater transparency and insight into these markets and how best to participate in them in a manner that meets their high standards for professionalism, scale, risk management, and security. The launch of these indexes embodies MSCI’s commitment to bringing clarity to diverse asset classes and to create solutions that capture long-term, disruptive investment trends. MSCI takes a systematic and process-oriented approach in providing information to help investors gain transparency and make better investment decisions.”
MSCI 3 New Digital Assets Indexes
1) MSCI Global Digital Assets Indexes – 2 separate indexes that aim to represent the performance of the top 30 or top 20 digital assets, respectively, as measured by their full market capitalization (excluding stablecoins).
2) MSCI Global Digital Assets ex Proof-of-work Index – Aims to represent the performance of digital assets, selected by market capitalization, that do not rely on a proof-of-work consensus mechanism. A consensus mechanism, also referred to as consensus protocol, allows a computer network to coordinate a distributed ledger. It allows a general agreement to be achieved by all participant nodes. A proof-of-work consensus mechanism requires substantial, energy-consuming computational work for the creation of new blocks containing transactions in the distributed ledger.
3) MSCI Global Digital Assets Smart Contract Index – Aims to represent the performance of digital assets, selected by market capitalization, that are associated with technology platforms supporting “Smart Contracts” features. A Smart Contract is a digital program that runs on a blockchain. It is a collection of programs and data that resides at a specific address on the underlying blockchain. Digital assets that support Smart Contracts functionality are capable of being used by a wide range of decentralized applications across industries.
The indexes will use datonomyTM – a new classification system for the digital assets market. Delivered as a new data service, datonomy classifies coins and tokens based on how they are used. Designed to provide a consistent, standardized way to help market participants view and analyze the digital assets ecosystem, datonomy will help create an increased level of transparency into how the market is moving and can be licensed for a variety of use cases, such as the review and assessment of portfolio performance and reporting.
MSCI is the owner and sole administrator of this new classification system and may receive input on potential changes from the datonomy Advisory Board (“Advisory Board”), as well as other market participants. The Advisory Board members will be comprised of Goldman Sachs, MSCI, Coin Metrics as well as third parties that can provide expertise on maintaining datonomy. Inaugural third-party members will be announced at a later date.
MSCI Digital Assets Indexes Partnerships
The new indexes will leverage insights based on collaboration with experts such as Menai Financial Group (“Menai”), a leading provider of institutional-grade digital-asset investment products and trading services. The indexes will consist of a blend of single-digital-asset indexes designed and published by Compass Financial Technologies (“Compass”), a leading service provider on digital assets which specializes in the design, calculation and publication of market benchmarks, financial indexes, and quantitative investment strategies.
Menai’s expertise in digital assets continues to inform MSCI’s development of its digital assets solutions, which help investors to navigate the investment universe for digital assets, evaluate risks and challenges, and assess emerging opportunities and developments as the rapidly growing industry drives technological change. Compass, an independent Swiss-based company focused on the design, calculation and administration of market benchmarks and quantitative investment strategies, created the single-digital-asset indexes that are the foundational building blocks for MSCI’s new blended indexes.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.
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