dxFeed, a trailblazer in data solutions and index management for the global financial industry, including both traditional and crypto sectors, proudly announces the launch of the dxFeed Faces of the Crypto Market™ (ticker symbol “FACE𝑛”) Index Family. This innovative index family empowers investors, analysts, and financial professionals to comprehensively analyze and decipher the complex dynamics of the cryptocurrency market.
“The Faces of the Crypto Market Index Family is designed to provide a distinctive perspective on the cryptocurrency landscape by decomposing the underlying price movements of the market into a set of rigorously defined benchmarks,” said Anton Antonov, Head of Index Management and Quantitative Research at dxFeed. “Employing our proprietary methodology, each index within the FACE𝑛 family corresponds to an independent risk source, offering a novel holistic representation of the diverse crypto asset universe.”
Unlike conventional approaches that rely on simple averages or market cap-weighted averages, FACE1, the flagship index of the family, provides a more accurate characterization of the entire market. Notably, it explains a significant portion (typically over 60%) of the total price variation, underscoring its efficacy in capturing market dynamics. Meanwhile, FACE2 presents an “anti-market” portfolio, comprising crypto assets with distinctive return structures, offering a contrasting perspective.
Further enriching the FACE𝑛 family are indices FACE3 to FACE6, representing additional risk sources with minimal intercorrelation among the index family members. While FACE1, FACE2, and to some extent FACE3 demonstrate persistence over time, the composition of other indices exhibits a more fluid nature. This fluidity, however, unveils coins with distinctive behavior and notable contributions to overall market risk, spotlighting their significance in the market ecosystem.
The FACE𝑛 indices serve as invaluable benchmarks for portfolio managers, providing comprehensive insights into market dynamics. Moreover, these indices can stand as independent assets, offering strategic diversification and hedging opportunities in various scenarios.
The journey into the realm of indices commenced in the fall of 2022, when dxFeed introduced an array of pioneering indices. Notable amongst these are Bixie, a US Dollar Index (USDX™) crypto-twin, Honest Gold (HAU™), Crypto Ortho 500 (COSM™) Indices, and Blockchain Value Index Family. These earlier innovations laid the foundation for the revolutionary FACE𝑛 Index Family, which promises to redefine cryptocurrency market analysis.
dxFeed is a leading market data and services provider and calculation agent for the capital markets industry. According to the WatersTechnology 2022 IMD & IRD awards honors, it’s the “Most Innovative Market Data Project.” dxFeed focuses primarily on delivering financial information and services to buy- and sell-side institutions in the global markets, both traditional and crypto. That includes brokerages, prop traders, exchanges, individuals (traders, quants, and portfolio managers), and academia (educational institutions and researchers).