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BAM provides multiple crypto currency market indices that are designed to measure the performance of a selection of cryptocurrencies. The BAM Core includes some of the biggest and most liquid crypto assets while the BAM Next11 index tracks relatively new and promising crypto assets.

BAM CoreThe BAM Core contains some of the biggest and most liquid crypto assets.
10/20/20211079.99
+0.43%(24h)
Last updated at 10/20/2021
7d31d180d1y
Returns13.29%15.62%0.00%0.00%
Volatility2.60%4.61%5.50%5.50%

Key Info

The BAM Core Index began on 5/1/2021. It covers about 87.10% of the crypto market.

Index NameBAM Core
Index TypeCryptocurrency Core Market Index
Inception Date5/1/2021
# of Constituents5
Market Capitalization$1,676,872,097,943.26
Inception Value1000
Market Coverage87.10%
Weighing MethodSee Methodology
CurrencyUSD
Index AdministratorBAM Index Solutions
Calculation AgentBAM Index Solutions
Data ProviderCoinMarketCap

Criteria

The BAMI determines a digital asset’s index eligibility considering the following criteria:

Size

Must be in the CoinMarketCap TOP 150 for at least 90 days.

Liquidity

Needs to be listed on at least two global exchanges. Cumulative daily trading volume has to exceed at least $100 million.

Custody

Custody service is currently provided by Kapilendo Custodian AG or will be supported soon.

Security

No 51% attacks or other major security incidents

Float

No Stable coins, no pegging to other assets

Components

NameTickerSector24h changeMarket Cap
BitcoinBitcoinBTCStore of Value+1.09%$1,160,077,513,367.60
StellarStellarXLMPayments-3.39%$9,208,736,222.09
EthereumEthereumETHSmart contracts platform​+0.44%$453,838,694,183.69
ChainlinkChainlinkLINKOracle-2.53%$12,195,790,144.14
PolkadotPolkadotDOTSmart contracts platform​+0.76%$41,551,364,025.74

Methodology

We define M(c,t)\operatorname{M}({c,t}) as the market capitalization of crypto asset cc at time tt. The classic weighting by market capitalization is given by
wc,t=M(c,t)kCM(k,t).w_{c,t} = \frac{\operatorname{M}({c,t})}{\sum\limits_{k\in C}\operatorname{M}({k,t})}\text{.}
The problem with this approach becomes visible by looking at the current market capitalizations of the crypto asset market. Bitcoin dominates the general crypto asset market and also our selection of assets. To fight the dominance of Bitcoin we would like to reduce the proportion of large crypto assets and shift over some weight to smaller ones. Therefore we define a function that has a decreasing gradient. This function will relatively increase small values and decrease big values. In our case we choose
f(x)=x1α.f(x)=x^{\frac{1}{\alpha}}\text{.}
We call α\alpha the redistribution factor. By applying ff to ww we shift the weights.
wnew=f(w)if(wi)w_\text{new}=\frac{f(w)}{\sum_{i} f(w_i)}
By choosing an α\alpha you can refine the degree of redistribution. An α\alpha of 1 implies f(x)=xf(x)=x, meaning the transformation wont have any effect. This represents the base case where we choose the weights by their proportional market capitalization. An α>1\alpha>1 will overweigh the assets with relatively small market caps. When α=\alpha=\infty this portfolio is equal to the 1/N1/N-Portfolio. An 0<α<10<\alpha<1 will overweigh assets that already have a huger market cap. An negative α\alpha will flip the roles and the smallest assets become the biggest ones. The weighting function is then given by
wc,t=f(M(c,t))kCf(M(k,t))=M(c,t)1αkCM(k,t)1α.w_{c,t} = \frac{f(\operatorname{M}({c,t}))}{\sum\limits_{k\in C}f(\operatorname{M}({k,t}))} = \frac{\operatorname{M}({c,t})^{\frac{1}{\alpha}}}{\sum\limits_{k\in C}\operatorname{M}({k,t})^{\frac{1}{\alpha}}}\text{.}
Every investor may choose his own α\alpha. The BAM indices use an default α\alpha value of 3 and 3.5 respectively. You can also smooth the market cap using a rolling window mean
M^(c,t)=1Ti=0T1M(c,ti)\hat{\operatorname{M}}({c,t}) = \frac{1}{T} \sum_{i=0}^{T-1}\operatorname{M}({c, t-i})
This will reduce variance in weight changes. We provide an option to smooth the market cap by using an 7 day mean (T=7)(T=7). The value of the index is calculated as
I(t)=cCwc,tP(c,t)P(c,Tc,0)I(t)=\sum_{c\in C} w_{c,t} \frac{P({c,t})}{P({c,T_{c,0}})}
where Tc,0T_{c,0} corresponds to the 01.07.2018 and P(c,t)P({c,t}) is the price of coin cc at time tt. The index is calculated once a day with data recorded at 00:00 UTC

Index Advisory Board

Johannes Schmitt
Johannes SchmittCo-CEO

Previously at Kraken Digital Asset Exchange.

PhD in Philosophy from the University of Southern California.

Johannes Schmitt is responsible for the areas of product strategy, sales and IT and will focus on the further expansion of the range of services and the expansion of the partner network.

Didier Goepfert
Didier GoepfertCPO

Previously at BNP Paribas, Raisin, Streamr.

MSc in Capital Markets from the IAE Auvergne and MBA from ESMT Berlin.

Didier is focusing on the BLOXXON digital assets platform product development, strategy and partnerships. He is a regular speaker at crypto finance events and is a lecturing professor on cryptoassets for capital markets students at IAE Auvergne.

Person
Carlos FicolaBusiness Development Manager

Previously at UBS and part of the BLOXXON journey since day 1.

BA in International Business from Berlin University of Applied Sciences.

Carlos is our jack-of-all-trades covering topics from operations, legal and business development. Carlos also has deep understanding and interest in cryptoassets analysis.

Data provided By CoinMarket Cap
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