Lykke Crypto Index (LyCI)

What is the Lykke Crypto Index?

LyCI is a tool that consolidates and tracks the performance or value of a selection of underlying cryptocurrencies. This provides a snapshot of how this selection of the crypto market is performing overall in one single, easily understandable measure. This ensures that even where one cryptocurrency in the index goes up or down dramatically, the index will reflect the global performance of all the assets contained, giving a more accurate picture of overall market performance excluding idiosyncratic risks of single assets.

How can this help users?

There are several benefits to tracking the LyCI on a regular basis. These include:

• Useful benchmark of individual cryptocurrencies against a measure of market overall performance
• Quick and instant measure of general performance the cryptocurrency markets, as measured by the largest players

Advantages

There are several large advantages to investing directly in LyCI as opposed to investing in individual crypto assets

• Reduced risk by spreading your investment across a diversified portfolio of the largest cryptocurrencies on the market
• Reduced time and energy by not having to investigate and research individual assets, picking those that you prefer and ignoring those that you do not want to invest in
• Reduced costs through not having to address spreads across several transactions but only across those transactions related to the single index (there are no commissions on the Lykke Exchange)

Service Fee

1.45% p.a. deducted from the basket value on a minute-by-minute basis.

What assets are included in LyCI?

LyCI is a weighted index which means that the proportion of each digital asset contained in the group is dependent on their total market capitalization. With a larger weighting in Bitcoin we can ensure that there is less exposure to less well known cryptocurrencies.

LyCI takes the current mid-market prices of the 25 cryptocurrencies with the largest market capitalization – i.e. those that are worth the most in terms of total asset value.

At the time of writing the cryptocurrencies with the highest market cap and corresponding weights are (data from coinmarketcap):

Constituents:

Specification

If you want to know more details about LyCI, you can download the index specification document.