Nomura Research Institute (NRI), the leading consulting firm of Japan, partnered with Intelligence Unit (IU), a cryptocurrency investment solution provider, to launch a tradable cryptocurrency index.
https://t.co/U9LYiOFIRD — AVR Crypto (@avrare) January 29, 2020
On January 29, it has been reported that the new index’s name is NRI/IO Crypto-Asset Index and it is meant for use by financial institutions. The index also draws data from MVIS, the crypto index platform; and CryptoCompare, the major cryptocurrency data platform.
However, the dedicated website explains that the index is meant to cover global crypto markets in U.S. dollars and Japanese yen by tracking the largest cryptocurrencies. The index was designed for Japanese institutional investors with consideration for local availability and custody solutions.
The NRI/IO Crypto-Asset Index is rebalanced monthly and tracks the performance of a pre-defined basket of crypto assets and will be tradable in dollars and yen on NRI’s platform. The index includes Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC) and XRP.
Akihiro Niimi, the CEO of IU, commented:
“Strongdemand from institutional investors is contributing to the growth ofcrypto-asset funds, and well-diversified products like index funds areattractive as alternative investments.”
Likewise, Backtested performance statistics shown on the website claim that the year-to-date performance is 33.91%, the one-year performance is 104.86% and the three-year return is 2,211.26%.
NRI is an affiliate of Japanese financial services giant Nomura Holdings, which has embraced blockchain technology and offers several services related to crypto-assets.
In October 2019, Nomura Holdings and Line, the popular Japanese messaging app, announced a final capital alliance agreement focused on blockchain technology.
Similarly, in May 2018, Nomura rolled out cryptocurrency custodial services at its banks.
Thus, according to Nomura, the custody service aimed to address a perceived shortage of “safekeeping solutions” which were preventing traditional asset managers from building investment vehicles in the crypto ecosystem.