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Grayscale and FTSE Russell launch new crypto indices, Cardano included

Cardano gets more institutional exposure as Grayscale unveil new crypto sector indices

Oct 26, 2023
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The new indices will track the performance of different crypto sectors, such as smart contract platforms, and allow institutional investors to diversify their crypto portfolios.

The crypto market is becoming more attractive and accessible for institutional investors, thanks to the efforts of the world’s largest digital currency asset manager Grayscale Investments. The company, along with FTSE Russell, have announced the launch of five new crypto sector indices that will track the performance of various segments of the crypto industry, such as currencies, smart contract platforms, financials, consumer and culture, and utilities and services.

The new indices that track the performance of different crypto sectors – including currencies, smart contract platforms, financials, consumer and culture, and utilities and services – will provide institutional investors with a convenient and reliable way to gain exposure to a range of crypto assets without having to buy and store them directly. The indices will also help investors diversify their crypto portfolios and capture the growth potential of different crypto sectors.

One of the crypto asset that will be covered by the new indices is Cardano (ADA), the third-largest cryptocurrency by market capitalization, among the smart contract platforms that will be included in the indices. Cardano has already attracted the attention of institutional investors through Grayscale Investments, which offers several crypto investment products, including the Grayscale Smart Contract Platform Ex-Ethereum Fund holding Cardano as its third-largest component with a 24% weight. The fund allows investors to gain exposure to smart contract platforms other than Ethereum, which dominates the sector.

The inclusion of Cardano in the new crypto sector indices by Grayscale and FTSE Russell is another sign of its growing recognition and adoption by institutional investors. This could boost the demand and price of ADA, which is currently trading around $0.8. Cardano has recently undergone a major upgrade called Alonzo, which introduced smart contract functionality to its network. This could enable a new wave of innovation and development on Cardano, as well as attract more users and developers.

The launch of the new crypto sector indices by Grayscale and FTSE Russell is also a positive development for the overall crypto market, as it shows the increasing maturity and diversity of the industry. It also reflects the growing interest and involvement of institutional investors in the crypto space, which could lead to more liquidity, stability, and growth for the market. As more institutional investors enter the crypto market, they could also drive more innovation and adoption of crypto technologies across various sectors and industries

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