Home / Markets / Cryptocurrency /  Polygon becomes part of Bitwise 10 Large Cap Crypto Index

NEW DELHI: Homegrown crypto startup, Polygon, has become part of the Bitwise 10 Large Cap Crypto Index (BITX), which tracks the returns of the 10 largest crypto assets, as measured and weighted by free-float market capitalisation. Bitwise Asset Management, which manages the index, is a crypto-specialist asset manager, with assets under management (AUM) worth $1.5 billion.

As part of the May month-end index reconstitution process, Polygon (formerly Matic) entered the index, which also constitutes Bitcoin, Ethereum, Chainlink, Bitcoin cash and Litecoin, among other crypto assets. Polygon replaced crypto token Aave in the May reconstitution and rebalancing of the index.

Index constituents are screened every month for liquidity, custody, and other risks, and rebalanced.

The current index value stands at 46,473 with a market capitalisation of $1.12 trillion. The index has surged 64.79% on a year-to-date basis against a 29.87% rise in Bitcoin.

In recent times the demand for layer 2 scaling solution is attracting capital inflows, which is, in turn, has been fueling the rise in Matic tokens, which is the native cryptocurrency of Polygon.

Polygon has a 1.03% weightage in the Bitwise 10 Large Cap Crypto Index, while Bitcoin has a weight of 63.92% and Ethereum 28.85%.

The Bitwise 10 Crypto Index Fund, available to pre-selected investors and institutions, seeks to track the Bitwise 10 Large Cap Crypto Index. The AUM of the fund is $817 million and has delivered 369% returns in the past year.

Polygon, which was co-founded in 2017 by three Indian software engineers — Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, is a layer 2 Ethereum scaling solution. The company aims to improve the usability and convenience of the current decentralized ecosystem.

The rise in Matic’s price has turned its co-founders into India’s first crypto billionaires, part of it stemming from their current stakes in the cryptocurrency at around 4-5%. Billionaire investor Mark Cuban of Shark Tank fame, who is also the owner of NBA team Dallas Mavericks, recently invested an undisclosed sum into Polygon.

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