New Data Reveals XRP’s Role in STOXX Digital Asset Blue Chip Index
Recent data has unveiled that XRP plays a crucial role in the STOXX Digital Asset Blue Chip Index, a firm that operates under European regulations and is recognized globally by leading index provider STOXX Ltd.
The prominent firm has just released the breakdown of XRP and other cryptocurrencies included in the index during its most recent review.
The STOXX Digital Asset Blue Chip Index is a representation of high-quality crypto assets that mirror the current crypto landscape. Assets are carefully selected based on their quality, activity, robustness, and financial strength using specific metrics and a rigorous selection process in line with the Bitcoin Suisse Global Crypto Taxonomy.
This index encompasses four out of five crypto sectors, which make up 98% of the market’s $2 trillion cap. It aims to ensure diversification through weight caps and utilizes sector segmentation for accurate benchmarking purposes.
An interesting point to note is the inclusion of payment coins in the weighted subsectors, with XRP and Bitcoin being prominent features, alongside other assets in the layer-1, data, and credit sectors.
XRP Secures Third Place in Weighted Basket
According to the latest quarterly review by STOXX, the top five crypto assets in the STOXX Digital Asset Blue Chip Index are Bitcoin, Ethereum, XRP, Cardano (ADA), and Tron (TRX).
XRP holds a weight of 11.71% in the index, placing it behind Bitcoin and Ethereum, both with capped weights of 30%. ADA and TRX hold market shares of 8.44% and 5.64%, respectively.
Effectively, XRP ranks third in the weighted basket of digital assets available for institutional investment.
Excitement Over XRP’s Composition in STOXX Index
The presence of XRP in the STOXX Digital Asset Blue Chip Index has generated significant optimism within the community, seen as a positive development.
STOXX offers a wide range of indices, numbering over 17,000, which includes prominent equity indices like the STOXX Europe 600 and EURO STOXX 50. These indices are utilized by more than 550 companies globally for benchmarking purposes and serve as the foundation for various financial products, such as ETFs, futures, options, structured products, and passively managed investment funds. STOXX manages these indices in accordance with the European Benchmark Regulation (EU BMR).
In December, XRP accounted for over 10% of Valour’s Digital Asset Basket 10 index (VDAB10) in the European market. However, updated data indicates a significant decrease in this weight, with Solana (SOL) surpassing XRP in the index.
Please note: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect The Crypto Basic’s stance. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic holds no responsibility for any financial losses incurred.