Royalton Partners Relaunches
Royalton CRIX Crypto Index
An index designed to capture fast growing asset class of cryptocurrencies
(Luxembourg, Wednesday, January 26, 2022) – Royalton Partners AG, the sister company of Royalton Partners SA, a licensed Alternative Investment Fund Manager headquartered in Luxembourg, has relaunched the Royalton CRIX Crypto Index (“Royalton CRIX“). The index is designed to represent the fast-growing global cryptocurrency market.
Royalton CRIX is calculated by S&P Dow Jones Indices since December 2021, powered by Lukka’s institutional data, and administered by Royalton Partners AG. Wolfgang Härdle, Professor of Statistics at Humboldt University of Berlin, led the research team that developed the index, and the Royalton CRIX Index administration team will be joined by one of Professor Härdle’s doctoral researchers. Michael Althof, also a doctoral researcher with Professor Härdle’s team, joins the investment management arm, Royalton Partners SA, from PIMCO, where he was the Lead EMEA ETF Capital Markets Manager and Portfolio Manager.
Royalton CRIX aims to provide a representative market index of investable cryptocurrencies. The minimum index constituent number is set at 5, and historical back testing from 2016 to 2021 resulted in a maximum of 15 constituents. Royalton CRIX is designed to closely represent the return characteristics of the total market index which is defined as all cryptocurrencies compiled by Lukka Prime, filtered for minimum liquidity while excluding stablecoins, derivative-related coins and asset-security coins. Lukka Prime provides the world’s first and only crypto pricing data that uses a Fair Market Value (FMV)-focused methodology for valuing crypto assets.
Royalton CRIX reconstitutes on a quarterly basis and rebalances every month by market capitalization, following an algorithm based on the Akaike information criterion, as well as the liquidity, daily volume and market capitalization of individual cryptocurrencies. The index’s construction follows the Laspeyres methodology. Royalton Partners AG Index Board is tasked with overseeing the regulatory suitability of the selected constituents.
The index’s objective is to allow investors to model portfolio allocation into the cryptocurrency asset class, track its performance, and provide a benchmark.
Royalton CRIX has been referenced by the European Central Bank in its Economic Bulletin, Issue 5/2019.
Royalton Partners AG acquired the intellectual property of the index from Humboldt-Innovation GmbH, an affiliate of the Humboldt University of Berlin, in February 2021. Since the acquisition, Royalton cooperated with Professor Härdle’s team to stabilize the index constituents over time using Lukka Prime to define a universe of investable cryptocurrencies. Lukka Prime’s cryptocurrency pricing database is also the source used for the S&P Dow Jones Indices daily index calculation.
Professor Härdle said, “We constructed this index to provide market participants with a reliable measure to capture the rapidly expanding universe of investable cryptocurrencies.”
Nigel Williams, Chairman of Royalton Partners, added, “We are excited about the relaunch of Royalton CRIX. As cryptocurrencies become an established and widely accepted asset class, we are sure that this innovative index will provide significant value to investors by establishing a trustable benchmark.”
“S&P Dow Jones Indices is pleased to collaborate with Royalton Partners and serve as the calculation agent for their Royalton CRIX Crypto Index,” said Marius Baumann, Managing Director and Global Head of Custom Indices at S&P Dow Jones Indices. “S&P Dow Jones Indices is proud to help enhance transparency for this nascent but rapidly growing asset class through its independent indexing solutions.”
“Lukka is proud to provide our data to Royalton supporting the Royalton CRIX Index.” said Lukka CEO Robert Materazzi. “We were very impressed with the data-driven approach of Royalton, a philosophy we share at Lukka, in our efforts to provide the highest quality data products to this rapidly maturing industry.”
Przemyslaw Bielicki, a partner at Royalton Partners and Head of Royalton Partners AG Index Platform, commented, “I am very glad that we can present Royalton CRIX to the investment community. Over the last nine months, together with Professor Härdle’s team of researchers at the Humboldt University Blockchain Research Center, we have made a journey from academic project to the world of financial institutions. Adjusting the index to the requirements of market participants while maintaining its versatility was an exciting learning process for all of us. I believe that the launch of Royalton CRIX is another step towards institutionalizing Crypto markets.“
Royalton CRIX can be found at www.royalton-crix.com and www.spglobal.com/spdji/en/custom-indices/royalton-partners-ag-rpag/royalton-crix-crypto-index, and on Bloomberg with CRIX Index <GO>.
About Royalton Partners
Royalton Partners is an authorized Alternative Investment Fund Manager headquartered and regulated in Luxembourg. Royalton Partners’ management team has been investing together since 1990, focusing on the management of assets held in closed and open-ended fund structures, including private equity, listed equity, real estate, infrastructure, fund of funds and debt. Royalton Partners provides comprehensive fund management services as required by the AIFM Directive. For information about Royalton Partners, visit https://www.royalton-partners.com/
For media inquiries related to Royalton Partners please contact Nigel Williams at firstname.lastname@example.org
Founded in 2014, Lukka serves the largest digital asset institutions with middle and back-office software & data solutions. Lukka bridges the gap between the complexities of blockchain data and traditional business needs. Its customers include Crypto Asset Exchanges and Trading desks, CPA & Accounting Firms, Fund and Financial Auditors, Fund Administrators, Miners, Protocols, individuals, and any other business interacting with crypto assets. All of Lukka’s products are created with institutional standards, such as AICPA SOC Controls, which focus on accuracy and completeness. Lukka is based in New York City. For information about Lukka, visit https://lukka.tech/ .
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