In January 2022, India acquired the first cryptocurrency index, designated as IC15. CryptoWire, the worldwide cryptocurrency mega app, has released it. The goal is to follow the performance of the top 15 most-traded cryptocurrencies on the world’s most popular exchanges. The cryptocurrency index in India would aid cryptocurrency investors in gaining a thorough grasp of the virtual coin trading process.
Cryptocurrencies have begun a corrective phase after a significant run-up in 2021. The Reserve Bank of India’s cautions against the usage of cryptos and the forthcoming cryptocurrency regulatory law has put cryptos under pressure. The cryptocurrency market is more volatile than stock markets, posing a danger to investors, especially individual investors who invest without sufficient expertise. While several major platforms, such as WazirX and CoinSwitch Kuber, have previously enabled crypto trading, the nation lacked a specialized crypto index.
A governing committee for IC15 includes industry experts, domain specialists, and others. With the reshuffling of the top fifteen cryptocurrencies in the cryptocurrency market, the committee monitors and maintains the index. The establishment of India’s cryptocurrency index aims to raise awareness and understanding of cryptocurrencies, mining, crypto EFTs, funds, the cryptocurrency market, and blockchain technology in India.
The cryptocurrency index in India must handle the growth of the cryptocurrency sector while limiting possible dangers by using opportunities and making the appropriate judgments. This tool will allow crypto investors to carefully monitor and analyze the highly volatile cryptocurrency market using research-based and technology-driven methods. The first cryptocurrency index in India is expected to provide investors and financial managers with various investing options.
What role will the IC15 index have for investors?
The IC15 aims to educate investors about index-related products such as crypto funds and exchange-traded funds (ETFs). A cryptocurrency exchange-traded fund (ETF) follows the performance of one or more digital tokens that make up the fund. The price of crypto ETFs changes due to buying and selling activities. Crypto ETFs, like stocks, are traded daily.
In addition, the index will include data on crypto mining and the overall performance of the crypto market. While its primary goal will be education, it will provide diversification opportunities for investors interested in various crypto blockchains and tokens.
The IC15 may one day become a benchmark for fund managers to use in assessing the performance of underlying cryptocurrencies and associated products and an indicator of market mood.
Who will choose the 15 cryptocurrencies included in the IC15 index?
CryptoWire has organized an Index Governance Committee, which will comprise crypto specialists, outstanding academics, and industry veterans to govern the IC15 index. Out of the top 400 cryptocurrencies by market capitalization, the committee will choose 15 to participate.