Index Methodology
About 2100INDICES
2100INDICES is the information highway for all stakeholders in the crypto community, increasing transparency, building trust, and improving the reputation of the crypto economy.
Our Mission
Provide professional digital asset based indexes and data, ensuring quality and integrity through methodologies widely used in professional capital markets.
- Institutional-grade data infrastructure
- Transparency and regulation compliance
- Stop benchmarking against Bitcoin alone
Indexes owned and administered by Nika d.d.
Why Indexes Matter
Markets can include thousands of assets. Professional indexes provide quick, concise impressions of market direction and serve as benchmarks for investment strategies.
Index Use Cases
General Principles
Our methodology follows strict principles to ensure consistency, transparency, and professional standards in index construction and maintenance.
Index Rationale
The basis for applying methodology to achieve index objectives. Intensive research and market participant conversations inform our approach.
Digital Assets Universe
All coins and tokens from markets providing real-time and historical pricing form our global digital assets universe.
Classification uses rules-based methodology with market cap and liquidity criteria.
Selection Lists
Produced for fixed-constituent indices to determine replacements and indicate potential composition changes.
Index Termination Policy
For indices without listed financial products, termination requires:
- •3 months advance notification via press release or email
- •Opportunity for client feedback to alter decision
- •No market consultation for indices without financial products
Index Architecture
Our comprehensive index series covers the digital asset market through three key dimensions, providing multiple lenses for market analysis and investment strategies.
Size Indices
Market capitalization-based classification
Total Market Index
Top 1100 digital assets
Blue Chip Index
Top 30 largest assets
Large Cap Index
Top 100 by market cap
MidCap Index
Mid-tier 200 assets
SmallCap Index
Smaller 300 assets
Bitcoin & Ether Index
BTC and ETH only
Factor Indices
Asset type and blockchain classification
Ethereum Based Index
Top 100 Ethereum tokens
Coins Index
Top 100 native coins
Token Index
Top 100 tokens
NonEthereum Based Index
Top 50 non-ETH tokens
Tradable Indices
Liquidity-optimized for investment products
Blue Chip Tradable
Liquid blue chips
Coins Tradable
Liquid native coins
Large Caps Tradable
Liquid large caps
Ethereum Tokens Tradable
Liquid ETH tokens
Selection Criteria
Digital assets undergo rigorous screening based on market capitalization and liquidity to ensure representative and investable benchmarks.
Market Capitalization Screening
EMA(MCap)ₜ = α × MCap_t + (1-α) × EMA(MCap)ₜ₋₁
where α = 2 / (N + 1), N = 24 periods
We use Exponential Moving Average (EMA) with a 24-period span to smooth volatility. Only the top 60% of constituents by market cap are eligible for inclusion.
Liquidity Screening
EMA(Volume)ₜ = α × Volume_t + (1-α) × EMA(Volume)ₜ₋₁
Eligible if EMA(Volume) > First Quartile
High market cap alone doesn't guarantee inclusion. Assets must be frequently traded to ensure:
- •Easy conversion to fiat or other cryptocurrencies
- •Representative of actual market activity
- •Daily volumes calculated in USD across all trusted exchanges
First Quartile Rule: Assets must exceed the first quartile of EMA(Volume) across all cryptos. This statistical boundary ensures only actively traded assets are included, excluding the tail of the distribution.
Calculation Method
Our indices follow the Laspeyres Index methodology, a market capitalization-weighted approach that provides consistent measurement over time.
Laspeyres Index Formula
Index_t = Σ(Price_i,t × Quantity_i,0) / Σ(Price_i,0 × Quantity_i,0)
• Price_i,t = Current price of asset i
• Quantity_i,0 = Base quantity of asset i
• Base value = 1000 (August 2, 2018)
The divisor maintains continuity during rebalancing, ensuring only price changes affect the index value, not quantity adjustments.
Weighting Calculation
EMA(AdjMCap)ᵢ = f(EMA(MCap)ᵢ, CFᵢ)
w_i = AdjMCap_i / Σ(AdjMCap_j)
Adjusted market cap incorporates criterion function, then weight is calculated relative to total.
Capping Factors
Maximum weights are applied to prevent single-asset dominance and ensure diversification.
Publication Standards
24/7
Publication Period
USD
Currency
4
Decimal Places
1000
Base Value
Rebalancing Process
All indices are rebalanced bi-weekly to maintain current market representation while minimizing turnover through buffer rules.
Rebalancing Schedule
Every Friday
Bi-weekly rebalancing cycle
12:10 UTC
Review and calculation time
17:00 UTC
Changes become effective
Buffer Rules
New assets ranked in top 96% are automatically included. Remaining 4% selected from existing constituents to reduce turnover.
Special Circumstances
Hard Forks: Both resulting assets remain until next rebalancing.
Market Events: Liquidity requirements may be adjusted during extreme conditions.
Unique situations and unobtainable data handled at 2100INDICES discretion.
Technical Details
Advanced mathematical formulations and technical specifications for quantitative analysis.
History & Updates
Our methodology evolves with the market while maintaining consistency and transparency.
August 2018
Publication of complete guidebook
October 2019
Publication of Tradable Indexes
July 2022
Complete guidebook revision
Present
Continuous monitoring and improvements
Methodology Review Policy
2100INDICES constantly monitors index calculation rules and conducts periodic reviews to reflect market developments. Material changes are communicated through official channels.
Important Disclaimer
This guide is informational and not a solicitation. No information constitutes a promotion, recommendation, inducement, offer or solicitation to purchase or sell any assets, transact any business, or enter into any legal transactions.
Information is not customized to specific needs of any entity, person or group.
No Advisory Relationship
2100INDICES is not an investment advisor and makes no representation regarding the advisability of investing in any investment fund or vehicle. Index inclusion is not a recommendation to buy, sell, or hold any digital asset.
Direct index investment is not possible. Past performance does not guarantee future returns.
No Warranties
Accuracy and completeness not guaranteed. No warranties, expressed or implied, as to results obtained from use of information.
Limitation of Liability
Not liable for any claims or losses, including lost profits or consequential damages from use or misuse of information.
2100INDICES is compensated for licensing its indexes to third parties for investment products. 2100INDICES is not responsible for information or products provided by these parties.