Data indicates that XRP plays a crucial role in the STOXX Digital Asset Blue Chip Index, a firm regulated under European guidelines and recognized as a global index by the prominent index provider STOXX Ltd.
The firm recently unveiled the composition of XRP and other cryptocurrencies within the index during its latest assessment. The STOXX Digital Asset Blue Chip Index is a representation of high-quality crypto assets that mirror the current state of the crypto market. These blue-chip assets are selected based on their quality, activity, robustness, and financial strength using specific metrics and a meticulous selection process aligned with the Bitcoin Suisse Global Crypto Taxonomy.
This index encompasses four out of five crypto sectors, accounting for 98% of the market’s $2 trillion cap. It ensures diversification through weight caps and utilizes sector segmentation for accurate benchmarking. Notably, the weighted subsectors include payment coins such as XRP and Bitcoin, as well as assets in layer-1, data, and credit sectors.
XRP holds the third position in the weighted basket according to the latest quarterly review by STOXX. The top five crypto assets in the STOXX Digital Asset Blue Chip Index include Bitcoin, Ethereum, XRP, Cardano (ADA), and Tron (TRX). XRP represents 11.71% of the index, following Bitcoin and Ethereum with capped weights of 30%. ADA and TRX hold market shares of 8.44% and 5.64%, respectively.
The inclusion of XRP in the STOXX Digital Asset Blue Chip Index has generated optimism within the community, signaling positive development. STOXX boasts a wide range of indices, with over 17,000 in its portfolio, including well-known equity indices like the STOXX Europe 600 and EURO STOXX 50. These indices are widely utilized by more than 550 companies globally for benchmarking purposes and serve as the foundation for various financial products like ETFs, futures, options, structured products, and passively managed investment funds, all in compliance with the European Benchmark Regulation (EU BMR).
In December, XRP accounted for over 10% of Valour’s Digital Asset Basket 10 index (VDAB10) in the European market. However, recent data shows a significant reduction in XRP’s weight, with Solana (SOL) surpassing XRP in the index.
Disclaimer: This article serves as informational content and should not be considered financial advice. The opinions expressed are those of the author and do not necessarily reflect The Crypto Basic’s stance. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic takes no responsibility for any financial losses incurred.