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In today’s “Crypto for Advisors” newsletter, Dovile Silenskyte, director of Digital Assets Research at WisdomTree, breaks down Crypto Indices, what they are and discusses key considerations. Then, in “Ask an Expert,” Eric Tomasewzki, a financial advisor at Verde Capital Management, answers questions for advisors about crypto portfolio construction using indices. – Sarah Morton Crypto’s Quiet Revolution: Index Design As institutions build exposure to digital assets, a simple reality is becoming clear: in crypto, the methodology is the product. Behind every index lies an invisible architecture — how assets are chosen, how they are weighted, how often they are rebalanced, and which data feeds underpin them. These design choices do not just shape performance. They define trust, transparency, and product viability. An index built on reliable data, verified prices, and clear governance becomes more than a benchmark. It becomes infrastructure. The line between a speculative token basket and an institutional-grade index is drawn by design integrity. The new rules of index construction Crypto does not follow the same data logic as equities. Supply can be staked or locked. Liquidity lives across dozens of venues. Regulations can redraw the map overnight. Illustrative supply comparison Source: Artemis Terminal, WisdomTree. 12 November 2025. Historical performance is not an indication of future performance, and any investment may go down in value. That means building a crypto index is part data engineering, part governance design. A well-built benchmark is not just a performance tracker. It is an investment framework. It all starts with intent. Are you targeting broad market exposure or a specific narrative like decentralized finance (DeFi) or Layer 1 innovation? That purpose shapes the eligible token universe, liquidity thresholds, and rebalancing cadence. Go too broad, and you capture noise; too narrow, and you are speculating, not benchmarking. Strong indices enforce discipline. Liquidity and size…

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Filed under: News - @ November 21, 2025 6:26 am