Methodology

Smith + Crown Currency Index (SCI:IND)

The Smith + Crown Currencies Index is a market-cap based index that measures the performance of the large-cap cryptocurrency market. The Index is currently made up of 11 members and serves as a representation for the performance of the market as a whole. It is calculated using Smith + Crown data and updated every 10 minutes.

Eligibility Criteria

  • Market Cap: Cryptocurrencies with market cap of $4 million USD or greater. The market cap of a potential addition to the index is looked at in the context of its short- and medium-term historical trends, as well as those of the industry. These ranges are reviewed from time to time to ensure consistency with market conditions.
  • Age: Usually measured as three consecutive months of existence and active trade. This will likely change in the future as the market matures.
  • Adequate Liquidity and Reasonable Price: Consists of highly tradable cryptocurrencies, with active and deep markets. The cryptocurrency should trade a minimum average daily volume of $20,000 USD in the four weeks leading up to the evaluation date.
  • Distributed, non-centralizedCurrencies must be based upon an distributed blockchain protocol and cannot have a centralized control or issuance system.

Index Characteristics

There are currently eleven currencies in the index: Bitcoin, Ethereum, Ethereum Classic, NEM, Waves, Lisk, Litecoin, Dogecoin, Dash, Bitshares, and Monero.

Rebalancing

Changes to the SCI are made on an as-needed basis. There is no annual or semi-annual reconstitution. Rather, changes in response to market conditions and market developments can be made at any time. Constituent changes are typically announced one to five days before they are scheduled to be implemented. Announcements are available to the public at our website, www.smithandcrown.com, before or at the same time they are available to clients or the affected currency creators.

Index Governance

The SCI is maintained by the Smith + Crown Currencies Index Committee. All committee members are professional members of Smith + Crown’s team. The committee meets weekly. At each meeting, the SCI Committee reviews cryptocurrency market news that may affect index constituents, statistics comparing the composition of the index to the market, protocols that are being considered as candidates for addition to the index, and any significant market events. In addition, the SCI Committee may revise index policy rules for selecting companies or other matters.

Contact + Questions

For any questions regarding the SCI, you can contact us at: sci@smithandcrown.com.