AI-powered Crypto index listed by the World’s second-largest stock exchange
Despite the ups & downs of the market and locking of horns with the regulators, Cryptos have seen a growing interest from retail and institutional traders alike over the past money months. No wonder then we have seen innovative new products being launched to cater to this growing interest.
Legacy financial markets provide an ample opportunity to trade with products like index funds which track the performance of a multitude of underlying financial instruments. These index funds are usually popular with retail traders as well since they don’t have to deal with the volatility of trading just one security.
Trading Cryptos actively involves a lot of risks since most of the digital assets are so volatile in nature. And perhaps this is the reason why crypto index trading has got a lot of traction among active investors. Among other crypto index launches this year, CIX 100 has perhaps been the most noticed one.
Created by crypto data provider Cryptoindex, the AI-powered index which tracks the performance of the top 100 performing cryptos has recently been listed on the Nasdaq exchange. The listing on the World’s second-largest exchange is the icing on the cake for the creators since the index has already been listed on Reuters, Bloomberg, and TradingView.
The ‘Zorax’ neural network algorithm combs through the data of 1800 digital tokens to develop a live marketplace account, free from inflated offerings & human biases. To infuse maximum transparency, the algorithm is designed to exclude coins with fake volumes and rankings and includes only the digital coins which have been in the top 200 for the past 3 consecutive months.
Its AI-based predictions have apparently performed with an 82% daily accuracy. For more details on the inner workings of the algorithm, please refer to the video above.
Earlier in February of this year, Nasdaq joined hands with the crypto market data company Brave New Coin (BNC) to list the latter’s two indexes — Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX). The data on these is available on the Nasdaq’s Global Index Data Service (GIDS). With the launch of the Bakkt’s Bitcoin Physical Futures launch with Intercontinental Exchange’s (ICE), Nasdaq’s inclination towards crypto trading is pretty evident.
The liquid indices (LX) are based on both qualitative & quantitative factors — volume, book depth, tick size among others from qualified market participants, to calculate a fair global value for the price of underlying BTC & ETH digital coins.
There was another notable addition to the Crypto trading market — a market sentiment based crypto portfolio being launched by the online trading platform eToro & data analysis firm TheTie. The latter’s data mining algorithm scans more than 850 million tweets per day for the social media platform to gauge the user sentiment on thirteen crypto-assets — BTC, ETH, XRP, IOTA, BCH, NEO, ETC, DASH, EOS, XLM, LTC, ZEC & ADA.
Dubbed as the TheTIE-LongOnly CopyPortfolio, it is available on eToro’s trading platform with a minimum $2,000 investment requirement. The portfolio which rebalances every month consisted of the following five crypto assets at the time of the launch: 47.24% stake in DASH; 23.92% EOS; 21.86% XRP; 5.01% MIOTA; and 1.97% ETC.
No matter what your trading style — active trader, passive investor, ‘Holdler,’ or an institutional investor hedging against the risk, it’s very likely you are going to find a crypto trading instrument that suits your risk profile & your investment style.
Published at Thu, 17 Oct 2019 19:48:58 +0000
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