Japanese consulting firm Nomura Research Institute, which is also leading in research, has entered into a partnership with Intelligence Unit (IU), a cryptocurrency investment solution provider, and MV Index Solutions (MVIS), to launch a tradable cryptocurrency index.
According to a report done by MVIS on Jan 29, the index will be dubbed NRI/IU Crypto-Asset Index and will be mainly be used by financial institutions. Apart from the Intelligence Unit, they will also source data from other data platforms such as MVIS and CryptoCompare.
The tradable index was launched following a growing demand from institutional investors which has led to the growth of crypto-asset funds and index funds. Even though the index will primarily deal with USD and Japanese yen, it will also work with the largest cryptocurrencies. The investable index was started not only for Japanese financial institutions but global investors as well.
The NRI/IU Crypto-Asset Index is the first benchmark and acts as a reference point for analyzing performance following the guidelines set by the crypto-asset benchmark. The main crypto-assets that will be tracked are Bitcoin, Bitcoin Cash, Ether, Litecoin, and XRP. The crypto-assets will be tradable in USD and Yen.
According to Thomas Kettner, who is the MD at MVIS, Index funds make a great investment option because they are diversified hence may be the solution to the growing demand from institutional investors.
NRI is part of Nomura Holdings, which is a Japanese financial giant. Nomura is at the forefront in embracing blockchain technology in its services, and so far, it is working on a messaging app that is based on the blockchain.
Due to the rise in demand for crypto-assets, there are more and more crypto derivatives on the rise. Derivatives come in to give more light on the price fluctuations of different assets.
Even though there is an increasing demand for crypto derivatives, there is no clear evidence to support that. According to Bakkt, which is a digital asset platform, the demand for Bitcoin has been on the decline recently.
Nomura Research Institute is not the first one to deal with the crypto-asset index. Currently, many startups are taking up the space to deal with the crypto index. It is only that the different crypto Index platforms have different specialties depending on the demand. The crypto scene is changing fast, and there is much more that is anticipated.
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