CoinShares announced the launch of the CoinShares Gold and Cryptoassets Index (CGCI), the first EU Benchmark Regulations (EU BMR) compliant index for the digital asset industry that combines digital assets and gold. The index, now live on Bloomberg Terminals and Refinitiv (formerly Reuters), is designed to provide exposure to cryptoassets while improving average returns and reducing volatility.
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The CGCI is a novel index designed to have moderate operating costs and provide risk-managed exposure to cryptoassets. The unique construction of the index leverages the characteristics of two asset classes –the high volatility of cryptoassets, the low volatility of gold, and the lack of correlation between the two.
While there are several existing cryptoasset indices that offer broad exposure to crypto assets through market capitalization weighting, they have proven to be limited in risk diversification due to the high correlation among cryptoassets and are characterised by a volatility close to that of a single cryptoasset. CoinShares developed CGCI to bring more effective risk control to crypto asset index products.
CoinShares has a legacy of bridging the gap between digital assets and traditional finance. Over the last seven years, the firm has built innovative, regulated, institutional-grade products and services backed by robust research. This legacy started with the first regulated Bitcoin fund in 2014, and continues today via the XBT Provider ETP offerings and other asset management and trading services built by the Group.
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