The number of digital assets surpassed 18,000 in March, trading across 460 exchanges, with a market capitalization of $1.75 trillion. President Biden’s Executive Order was a statement to the world that the United States plans to be a strategic leader in integrating digital asset technologies into the mainstream economy. Investors are alert to the opportunity; however, investors are also challenged to bring order to the chaos of the rapidly growing ecosystem. How many of the 18,000+ plus assets will survive? Who can pick winners and losers? Will small projects take market share from traditional markets and first-movers in native digital assets? Our conversations with investors made it clear that there was a gap in the market. Investors were thirsting for a dynamic, institutional digital benchmark that didn’t exist.
So, we built it.
One River Digital Asset Management and MVIS Index Solutions are pleased to announce the creation of the One River Digital Core Index (ticker: ORDCI) and the One River Digital Size Tilt Index (ticker: ORDST). These indices satisfy core investor wants and needs: a dynamic benchmark where assets fluidly adjust to the ecosystem; a systematic, rules-based approach that clears the highest of regulatory standards; indices that give investors the ability to tilt exposure to up-and-coming assets; and indices that are built for institutional scale.
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The Core and Size Tilt indices leverage One River Digital’s rigorous and institutional approach to asset management developed over decades of collective experience. To be eligible for the index, digital assets must pass both specific fundamental and market-based criteria. As the industry matures and more assets meet the qualifications, the Core and Size Tilt indices will expand to continually represent the highest quality, scalable segment of the digital asset markets.
One River Digital Core and One River Digital Size Tilt are both currently available for institutions via a SMA at Coinbase Prime and will soon be available in co-mingled institutional funds as well.
“Investors are overwhelmed by choice and the speed of change in the digital ecosystem. Creating dynamic indices gives our clients a benchmark that previously didn’t exist,” said Eric Peters, CEO and CIO of One River.
The One River Digital Core Index enables investors to access and track this dynamic market with market capitalization weights that are familiar to traditional indices. Investors preferring a set of more diversified holdings will be attracted to the One River Size Tilt Index, where the ranking methodology tilts weight away from the largest assets. Today, Bitcoin accounts for 64% in the Core Index versus 36% in the Size Tilt.
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“Institutional investors are accustomed to separating alpha from beta. Our indices better enable investors to fine tune their exposures. Clients can now build better portfolios, exposures that represent their needs across return, risk, liquidity, safety, transparency, and fees. Our Digital Size Tilt Index is the first of its kind, using techniques and knowledge gleaned from decades of experience in institutional equity management,” said Sebastian Bea, President of One River Digital.
One River Digital partnered with MVIS Index Solutions GmbH (MVIS), an industry-leading, regulated index provider, in designing and implementing its indices. As the third-party administrator of the index, MVIS analyzed and approved the index methodology. MVIS will provide continual, independent oversight of the indices using the CCCAGG pricing provided by CryptoCompare..
“MVIS was a great partner for us as we researched and designed the One River Digital Core and One River Digital Size Tilt Indices. Their robust processes and experienced team ensure the highest level of care and integrity will be taken in maintaining the indices going forward,” said Paul Ebner, Portfolio Manager and Researcher for Systematic Digital Strategies.
“The One River Digital Core and One River Digital Size Tilt Indices are the start of a wide range of investment solutions that will be delivered via the ONE Digital SMA platform, powered by Coinbase Prime,” said Jasmine Burgess, Chief Operating Officer and Chief Risk Officer of One River Digital. “Co-mingled institutional fund versions of the two indices will also be available in the near future.”
The One River Digital Core and One River Digital Size Tilt Indices are rules-based indices and calculated in USD. Both indices are reviewed on a quarterly basis.
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