Bitcoin Electronic Crypto Currency Exchange Concept Illustration

In an effort to explore a benchmark for digital assets, FTSE Russell says it will launch an indicative index to track digital asset prices.

The global indexing firm says its Digital Assets Index will track the activity on exchanges that enable trading in cryptocurrencies, digital tokens and coins.

“The indicative index will be used to evaluate and test a benchmark for the most actively traded digital assets,” FTSE Russell said in a release.

Alongside the index, the firm said it will also publish volume weighted average prices (VWAP) for the 100 digital assets that make up the index.

The VWAPs will be calculated by DAR Data Services (DAR), which will screen the data for erroneous prices. DAR will also select the exchanges to be used in the index.

“The new indicative FTSE Digital Assets Index will help the market evaluate a benchmark and assist in the creation of industry standards. It will also offer much needed transparency and create greater awareness for investors interested in this new asset class,” said Mark Makepeace, non-executive chairman, information services division, London Stock Exchange Group, which owns FTSE Russell.

FTSE Russell said it plans to establish an advisory group to help define the assets that will be eligible for index inclusion.