BTC/USD: 4016.8867

Selection & Weighting

The HOLD 30 Index has a policy of selecting the top 30 coins, by inflation adjusted market capitalization. The selected coins are then held in proportion to their inflation adjusted market capitalization.

Inflation adjusted market capitalization is calculated as follows:
(composite price) x (circulating supply + additional supply publicly scheduled for next 5 years).

Composite Price

A coin's composite price is derived from the real-time price data from multiple exchanges. The individual prices are combined with two techniques:

  • Trade volume weighting:
    The price on the exchange with more trade volume has more influence on the composite price.
  • Inverse price variance weighting:
    The exchange with the price that deviates more from the prices of the other exchanges has less influence on the composite price.

Supply & Inflation Adjustment

Circulating supply is the best approximation of the number of coins available to public investors. It is derived by taking the total number of existing coins from the blockchain and subtracting the number of coins verifiably burned, locked, or reserved (for example, by a foundation). Public blockchain explorers are used to monitor corresponding blockchains when available. If not, our own node is run. In addition to circulating supply, the index incorporates supply inflation that is publicly known to the market.

This is important because different protocols have different supply regimes (e.g. inflationary, deflationary, pre-mined). The market is aware of future supply in determining price, but it would not be captured with a market capitalization calculation that relies on only present supply. To that end, the index adds to presently circulating supply, the amount of supply expected to be added over the next 5 years.

Eligibility Criteria

Cryptocurrencies should meet the following additional criteria to be included in the index:

  • Actively traded on multiple recognized exchanges.
  • Trading volume not over-concentrated on a single exchange.
  • Monthly trade volume exceeding 30% of circulating supply for the past 3 months.
  • Free floating price. The price should not be pegged to fiat currencies.

Data Source Selection

Data is essential to our index. It is important to cover as much market activity as possible, while not sacrificing the quality and credibility of the data we incorporate. The index committee evaluates the following criteria to determine if the index should recognize an exchange and include it as a data source:

  • USD trade volumes for the coins in our index.
  • Restrictions on deposits and withdrawals of bitcoin and fiat currencies.
  • Quality and reliability of real-time price and trade volume data API.
  • Compliance with relevant regulations.

Hard Fork Policy

When a hard fork occurs, the forked coin will be held in the index until the next rebalancing. This decision embodies the idea that the value of the forked coin stems from that of the original coin. Thus the index should hold the two coins as if they were one until the next opportunity to treat them as separate.

The forked coin will be removed from the index upon the next rebalancing and will have the opportunity to join again when it meets all the eligibility requirements and has a market capitalization of its own to warrant being included in the index.