Nasdaq continues to embrace crypto with new DeFix index
Decentralized finance (DeFi) refers to blockchain-powered financial solutions that provide access to traditional financial services without the need for a central financial intermediary. DeFi products and services range from the simple to the complex, depending on their intended use case. Examples include tokenized assets, lending protocols, and decentralized exchanges and derivatives.
Decentralized Finance
Nasdaq’s newly-listed DeFix Index (DEFX) tracks six leading decentralized finance solutions: stablecoin project MakerDAO, prediction market protocol Augur, DEX protocol 0x, DeFi solution Amoveo, prediction platform Gnosis, and predictions market Numerai.
Nasdaq will provide investors with real-time information on the projects included in the index. For investors looking to capitalize on market movements, the DeFix Index is undoubtedly a valuable tool. Recognizing the gap in the market for such an index, Nasdaq explained its motivations stating: “DeFiX is the first altcoin index that reflects the dynamics of the most promising blockchain projects working in decentralized finance: Augur, Gnosis, Amoveo, Numerai, Maker and, 0x.”
Referencing Nasdaq's move to include an index for blockchain-based decentralized finance, Zack Hess, one of the leading developers for the insurance contract and investments-focused blockchain Amoveo, said in a press release that he is happy to see increasing awareness surrounding DeFi projects and that he would like to "give everyone access to modern financial tools."
Nasdaq’s Crypto Push
The DeFix Index was developed by a London-based brokerage firm EXANTE. EXANTE launched a Bitcoin fund in 2012. The bitcoin hedge fund was recognized as the most profitable hedge fund in history by Bloomberg. The fund continues to return impressive numbers, amassing an overall return on investment of 70,000% since its launch. EXANTE also launched the XAI fund designed to introduce investors to the altcoin market, which has so far generated modest returns for participants.
The inclusion of the DeFix Index is not Nasdaq’s first foray into the cryptographic asset markets. At the beginning of the year, the financial services company revealed it had partnered with Brave New Coin to provide investors with access to Bitcoin and Ethereum Liquidity Indexes (BLX and ELX) on its platform. The collaboration was followed by the addition of BNC’s Ripple-focused index (XRPLX) in April.
Nasdaq also hosts two benchmark indices for the 200 digital assets by market capitalization in conjunction with CoinMarketCap.
The addition of an index focused on decentralized finance (DeFi) is a sign that Wall Street has an eye on developments in the new, fast-growing DeFi market.
For some thought leaders, the addition of crypto-related products on Nasdaq “will provide the pricing benchmark information that participants in the blockchain and cryptocurrency sector need.”
The new DeFix Index is refreshed in one-minute intervals and is available on the Nasdaq Global Index Data Service (GIDS). Investors can also access the DeFix index on TradingView and Google. Plans are underway for inclusion in Yahoo Finance.
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Alex Lielacher, Khareem Sudlow