Compass Financial Technologies Launches an Innovative Range of Smart Crypto Indices

By AIT News Desk On May 3, 2021

Compass Financial Technologies, a Swiss and French based index provider, is launching an innovative cryptoassets index platform that offers investors various ways to gain exposure to the crypto market. Solutions will range from reference prices to basket or smart risk-controlled indices. These new indices are aligned with the EU Benchmark Regulation (EU BMR).

Compass digital assets solutions are already used by major players such as Coinshares, one of the leading digital asset managers. As of today, more than 5 Bln USD refers to crypto indices computed by Compass.

This new Compass cryptoassets index family bridges the gap between the digital asset ecosystem and the traditional financial engineering by offering new tools to invest in the crypto market. In addition to crypto reference indices that can be used as BMR-compliant benchmarks for ETPs or others investment products, the platform also offers volatility target indices, an innovative and efficient tool to get exposed to the highly volatile crypto market while controlling the volatility and mitigating the drawdown.

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“These innovative indices will open the way to new investment vehicles suited to the risk management of institutional investors”, says Guillaume Le Fur, founding partner of Compass.

As a registered benchmark administrator, Compass has developed the index platform under the EU Benchmark Regulations framework that guarantees the highest institutional standards in term of robustness and governance. With the objective of combining the expertise of the digital assets ecosystem and of the index engineering industry, Compass has appointed as index committee members users and recognized experts from the cryptosphere and from the traditional financial index industry.

“Volatility is the number one issue when it comes to cryptoassets. I am therefore particularly excited by the new family of volatility target indices which will prove very useful in controlling risk in a principled way”, added Professor William Knottenbelt, index committee member and Director of the Imperial College Centre for Cryptocurrency Research and Engineering.