Mirrored after the “FAANG” group of stocks, the BLOCK 5 provides exposure to the top digital assets in terms of reputability, speed, community and decentralization.
BLOCK 5 constituent assets are ranked through a proprietary combination of their relative USD market capitalizations, one-month trading volume, and in-depth due diligence on market conditions. The weighting of a constituent asset in the index is determined by the asset’s rank.
The ranking framework is as follows: First, the market capitalization of each constituent asset is calculated as the price of the asset multiplied by the available or circulating supply of the asset. Then, BLOCK 5 constituents are ranked by a hybrid of market capitalization, market conditions, trading volume, liquidity and on-chain activity.
Unlike standard equity markets, the digital asset markets trade 24/7, 365 days per year. Additionally, as with any fast-paced asset class, new developments occur frequently and require rebalancing to ensure optimum weighting of constituent assets.