The Bloomberg Grayscale Future of Finance Index (“the Index”) is constructed to track the performance of companies involved in the three pillars of the digital economy: Financial Foundations, Technology Solutions, and Digital Asset Infrastructure — as determined by Bloomberg Intelligence. Companies are selected based on:
- Showing significant current and prospective product and service offerings, competitive advantages, and market or brand presence associated with the theme are considered to be eligible.
- Key company filings and other documents such as 10-Ks, 10-Qs, 8-Ks, investor presentations, quarterly earnings reports, and earnings call transcripts are scraped using a frequency program to help identify and measure involvement in the digital economy.
- Eligible securities are back-tested together in order to measure consistency in behaviour as a group. This approach helps affirm companies with strong correlation to the Future of Finance theme from a quantitative perspective.
Eligible securities receive a Revenue Score, Theme Score, and Regulatory Score. A security must have a score of 1 or 2 in each of the Revenue Score, Theme Score, and Regulatory Score for inclusion in the Index. Eligible companies must also have:
- A primary listing on a major exchange within the Bloomberg Global Equity Indexes group. ADRs are eligible for inclusion.
- A minimum free float market capitalization of $100 million.
- A minimum 90-day average daily value traded of $1 million.
If the number of eligible securities is less than 20, then the following criteria are relaxed until such time that 20 issuers are considered for inclusion in the Index: Liquidity, Market Capitalization, Revenue Score.
The Index is rebalanced quarterly, effective at the close of business on the last trading day in March, June, September, and December.
To view the Methodology