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Tommy Lee creates five crypto indices to help institutional investors

Tommy Lee, of Fundstrat, is well known on Wall Street for his bearish predictions, but he has been a believer in Bitcoin  for sometime.

09.Oct.17 3:00 PM
By Daria Zaytseva


Tommy Lee creates five crypto indices to help institutional investors

Now the strategist has created five different indexes to help traditional Wall Street investors understand the evolution and behavior of cryptocurrencies.

Lee has been at the bottom of many predictions, renowned to be mainly bearish on investments. However, he recently predicted that Bitcoin would reach $ 6,000 by the end of the year, and by 2022 would reach $ 25,000.

Lee’s company, Fundstrat, is currently track a total of 630 digital currencies which they divide into market capitalization and trading volume. These are the five indexes he has formed.

Investors can then analyze the relative performance of various digital currencies within the indixes, just as the line of price increase for the number of shares of the S & P 500 grows against the decline for a given day, may indicate the state of health of the market.

Fundstrat went on to explain that they use a patented algorithm to determine how the coins should be weighed in the index. These are reconstituted every quarter. Fundstrat also makes it clear that these indexes are exclusively for research, and not for supporting any investment products.

On Wall Street, there has been a real divide between traditional investors and large financial players. Lee's indixes should help these types of intricate or unresolved investors realize the potential of this unprecedented asset.

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