Index

Melanion Bitcoin Exposure Index

Melanion Capital, an independent investment management company based in Paris, and Bita GmbH, one of the world’s most technologically advanced index platforms, have announced the launch of the Melanion Bitcoin Exposure Index. The Index is the first of its kind due to its unique methodology based on beta weighting which bridges the volatility gap between equities and Bitcoin. It tracks a beta-weighted equities basket exhibiting the highest correlation and revenue exposure to Bitcoin.

The Index was built to provide investors with exposure to the daily price movements of Bitcoin through a diversified basket of equities that meets traditional investment fund standards. 

This unique index, sponsored by Melanion Capital and Administered by BITA, marks the first milestone in the development of an innovative Digital Asset business for Melanion Capital.

About the Index

The Melanion Bitcoin Exposure Index captures the net total return performance of a selection of companies, listed at recognized North American and European exchanges, exhibiting the highest correlation and revenue exposure to Bitcoin. 


Beta Weighted to Bitcoin

The index constituents are weighted according to the Beta coefficient against Bitcoin, capped based on liquidity, and rebalanced and reconstituted on an quarterly basis. Index values are disseminated in an intraday and end-of-day basis. 


General information

  • Inception Date: 15.04.2021
  • Index value at inception: 1.000 
  • Return calculation: Net Total Return 
  • Weighting mechanism: Smart beta (w.r.t. Bitcoin), with liquidity adjustment
  • Rebalancing frequency: Quarterly
  • Reconstitution: Quarterly
  • Number of Constituents: Maximum 30
  • Base currency: USD


Listed Markets

Companies listed at recognized North American and European exchanges, exhibiting the highest correlation and revenue exposure to Bitcoin. 


Operate in Segments of

  • Crypto Asset Management and Trading,
  • Crypto Banking and Associated Services, 
  • Crypto Mining and Provision of Crypto Mining Hardware, 
  • Blockchain Technology, 
  • or the companies that hold Cryptocurrency on their balance sheet as investments or for preservation of value


Capping Criteria

To avoid undue concentration, each individual index constituent of Melanion Bitcoin Exposure Index should not represent more than 10% of the total index.


Liquidity Criteria

The initial beta-score weights are adjusted by the liquidity criteria to limit the impact of a single day trading to 25% of value traded for any constituent given a theoretical $25M inflow.

Top 10 Constituents

As of 6/30/2021

Source : BITA GmbH


Documentations

For index licensing requests: Index@melanion.com

Index Methodology Guidebook - French
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