Fundstrat launches 5 indexes to track Bitcoin and other cryptocurrencies

posted 12 months ago
A prominent Wall Street strategist who predicted bitcoin could more than quadruple in value in five years has created five indexes to track digital currencies.

Fundstrat Global Advisors' Thomas Lee, a prominent Wall Street strategist, said in a report Friday that the FS Crypto FX indexes are for institutional investors "to better understand the evolution and behavior of cryptocurrencies."

Fundstrat's indexes track digital currencies and divides them into five groups by market capitalization and trading volume.

Investors can then analyze the relative performance of different digital currencies within the indexes, similar to how the advance-decline line of the number of S&P 500 stocks rising versus falling on a given day can indicate the health of the market.

The development of the digital currency indexes also reflects the growth of the market to a size that may be increasingly attractive to institutional investors, Fundstrat's Lee said in the report. He pointed out daily trading volume in the 10 largest digital currencies is a "surprisingly high" $3.5 billion.
Tags: bitcoin, news