TradeBlock, the professional digital currency data provider, announced the public launch of the ECX Index and a suite of related tools to track its performance.
The ECX Index is an institutional benchmark rate for the USD-denominated price of Ethereum Classic and is used as the benchmark rate for the recently announced Grayscale Ethereum (ETC) Investment Trust.
ECX index
TradeBlock’s ECX Index is designed to track Ethereum Classic liquidity while smoothing out any deviations caused by anomalies and manipulation attempts on individual exchanges. The index value is a live rate calculated once per second based on trading activity observed on the leading Ethereum Classic exchanges.
Data from all exchanges is captured in real-time and immediately sanitized and validated to ensure the reliability of all trades involved. Each exchange’s data is then cohort-weighted based on its short- and long-term trading volume. The most liquid exchanges are given higher weights to maximize index price reproducibility in live spot markets. The index also weights each exchange based on price variance across all data points and trading frequency on each trading venue.
Specifically, the ECX Index includes markets that are cross liquid in both the ETC/USD and ETC/XBT cross and incorporates the XBX Index price to provide a consolidated ETC/USD reference price.
The Ethereum (ETC) Investment Trust
Grayscale Investments announced earlier this year the creation of the Ethereum (ETC) Investment Trust, which aims to allow investors to participate in Ethereum Classic price action through the purchase of tiled securities.
The Trust uses TradeBlock’s ECX Index as a reference price to determine the Net Asset Value.
The ETC trust will be the second product launched by the firm after the hugely successful Bitcoin Investment Trust (BIT), which has been allowing investors to gain exposure to Bitcoin since 2013.
A reliable reference for Ethereum Classic
Bitcoin’s continued economic growth has been a catalyst for increased interest in the broader digital currency market. Once a market full of novel yet untested offerings, digital currencies are now maturing into a market with established market leaders, attracting interest from casual and professional investors alike. These markets are increasingly being used by the public to store value, transfer value, profit from their volatility and diversify portfolios. They also serve as a haven for the ongoing debates on the governance and technological aspects of the various technical protocols.
One of the most significant of these markets is Ethereum Classic, a protocol built from the ground up that offers more than a peer-to-peer electronic payment system through native integration of smart contract capabilities. Smart contracts provide a dynamic framework in which pre-defined conditions can be enforced and executed without the need for outside intervention. The potential applications for the technology are diverse and are expected to add significant value compared to traditional contracting practices by optimizing its mechanics and reducing its costs.
True to one of its founding principles, Ethereum Classic has an immutable transaction book and is now traded on multiple markets around the world. As with all digital currencies, the unique dynamics of the markets mean that price discovery is not easy. Spot markets with low liquidity are very susceptible to the price manipulation and occasional anomalies that are prevalent in digital currency trading venues.
The exchanges and their weighted percentage of the ECX Index are listed below:
Component Prices (as of April 12, 2017)
| Exchange | Price | 24 hour volume | 24-hour Avg. Weight |
|---|---|---|---|
| Bitfinex (ETC/USD) | 2.65 | 237,552 | 2.12% |
| Bitfinex (ETC/XBT) | 2.63 | 153,470 | 10.99% |
| Crack (ETC/XBT) | 2.62 | 65,004 | 3.35% |
| Poloniex (ETC/XBT) | 2.62 | 623,147 | 83.55% |
The tools can now be accessed from the ECX Index section of the TradeBlock Markets page.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.