BitWise

As a part of the Bitwise month-end index reconstitution process for December, the announcement has been made that Avalanche ($AVAX) has officially entered the Bitwise 10 Large Cap Crypto Index

The first guiding principle toward their decision

I. Guiding Principles and Indexing ApproachThe Bitwise Crypto Indexes were developed to provide investors with a clear, rules-based, and transparent way to track the value of individual crypto assets and groups of crypto assets. The indexes are designed for benchmarking active strategies, serving as underlying indexes for index-tracking funds, or simply measuring the returns of the market over time.

The crypto market is new and presents many challenges to well-established protocols for indexing traditional assets such as stocks and bonds. The Bitwise Crypto Indexes aims to combine the best of traditional asset indexing methodologies with appropriate adjustments to adapt those practices to the crypto space.

The guiding principles of the Bitwise Crypto Indexes include:

  • Index and pricing decisions must follow a clear, rules-based, and transparent process.
  • If the judgment of the Bitwise Crypto Index Committee is required when applying those rules, decisions will be made public with full documentation of the decision-making process.
  • Indexes are designed in all aspects to be investable and replicable; as such, they will take into account measures surrounding liquidity, capital controls, trading venue stability, custody limitations, and other factors in a rules-based manner.

You dive more into the Bitwise Methodology here

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