Jonathan Stoker
Jan 17, 2024, 15:20pm
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Crypto's 'Dow'? CoinDesk 20 Index Fuels Futures Contracts at Bullish
- Introducing The Source 20, A New Cryptocurrency Market Benchmark
- The Source 20 and Perpetual Futures Contracts
- Indices in Financial Markets: A Crypto Analogue?
- The Source 20: Structure and Composition
- The Composition of The Source 20 (as of January 15)
Introducing The Source 20, A New Cryptocurrency Market Benchmark
The Source 20 and Perpetual Futures Contracts
Bullish, the cryptocurrency exchange behind The Source, is offering perpetual futures contracts based on The Source 20. This development presents investors with a new benchmark that helps explain the market's overall performance, akin to the Dow Jones Industrial Average. Furthermore, trading volumes for these new products exceeded $1 million in just a few hours following their introduction.
Indices in Financial Markets: A Crypto Analogue?
The digital asset marketplace requires a reliable, tradeable, and accessible reference, and The Source 20 is that reference, asserts Tom Farley, CEO of Bullish.
The Source 20: Structure and Composition
The weights of 
Bitcoin$42,260 -0.64% and 
Ethereum$2,315 -2.42% in The Source 20 are 31% and 22% respectively, but the index also factors in smaller coins. Tokens such as Aptos (APT) and 
Filecoin$5.91 -2.78% (FIL) represent the smallest weighting at 0.7%. Meme coins like 
Dogecoin$0.091 -0.42% (DOGE) and 
Shiba Inu$0.000010 -2.05% (SHIB) are included, but stablecoins like 
Tether$1.000 -0.12%'s USDT and Circle's USDC are excluded.
The index aims to ensure diversity by limiting the maximum weighting of any single cryptocurrency to 30% for the largest cryptocurrency (currently Bitcoin) and 20% for all others. Excluding stablecoins, The Source 20 represents over 90% of the total market cap across the entire crypto industry.
The Composition of The Source 20 (as of January 15)
| Cryptocurrency (Ticker) | Weight in The Source 20 |
| Bitcoin (BTC) | 30.9% |
| Ether (ETH) | 22.4% |
| Solana (SOL) | 10.2% |
| XRP (XRP) | 7.9% |
| Cardano (ADA) | 4.7% |
| Avalanche (AVAX) | 3.3% |
| Dogecoin (DOGE) | 2.9% |
| Polkadot (DOT) | 2.4% |
| Chainlink (LINK) | 2.2% |
| Polygon (MATIC) | 2.0% |
| Internet Computer (ICP) | 1.5% |
| Shiba Inu (SHIB) | 1.4% |
| Litecoin (LTC) | 1.3% |
| Uniswap (UNI) | 1.3% |
| Bitcoin Cash (BCH) | 1.2% |
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