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Index Eligibility

Definition ∞ The specific criteria an asset must meet to be included in a particular financial index. These criteria typically cover market capitalization, trading volume, liquidity, and sometimes regulatory status. For digital asset indices, technological factors and decentralization may also apply.
Context ∞ As digital asset indices gain prominence, the methodology for determining index eligibility is a key area of scrutiny. Changes in these criteria can significantly impact an asset’s visibility, institutional adoption, and overall market perception.

A white, textured, organic form, resembling a cloud or fabric, partially opens to reveal a core of concentric, smooth blue layers. A metallic ring hovers above the abstract structure, which rests on a reflective surface within a minimalist, cool-toned environment. This visual metaphor represents the intricate blockchain layers and protocol stack within a decentralized network. The inner blue strata symbolize Layer-2 scaling solutions and multi-chain architecture, emphasizing data partitioning and algorithmic complexity. It illustrates the tokenomics and governance layers of a Web3 ecosystem, highlighting protocol transparency and immutable ledger principles, essential for digital asset integrity.

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Wall Street Reduces Crypto Exposure, Triggering Market Liquidations

Institutional investors are pulling back from crypto-linked assets, leading to significant market liquidations and a re-evaluation of digital asset valuations.