The world has gone from a singular focus on Bitcoin to a much wider adoption of DeFi apps, distributed computing platforms, NFTs etc. As with the equity markets, categorization of sub asset groupings into sectors and more recently themes are important in the institutional adoptions of diverse asset classes.
Classifications can be useful for identifying market cycles and quickly assessing which sectors are outperforming. It enables investors to exploit those narrative plays end enhance the alpha potential of their portfolios.
MV Index Solutions (MVIS) has developed a classification scheme for digital assets and provides category indices that allow users to measure, benchmark, and capture the performance and characteristics of targeted categories within the digital assets, making digital assets more digestible to traditional finance investors while giving crypto native funds additional benchmarking capabilities.