Neutral Index

Definition ∞ A Neutral Index is a financial benchmark designed to reflect market performance without exhibiting a bias towards particular asset classes, sectors, or investment styles. In the context of digital assets, a neutral index would typically employ specific methodologies to avoid over-representation of any single cryptocurrency or market segment. Its construction aims for objective market representation.
Context ∞ Discussions around neutral indices in crypto news often pertain to the development of reliable benchmarks for evaluating the broader digital asset market. Such indices provide investors with a less skewed view of market trends, aiding in portfolio diversification and performance assessment. The methodology for creating a truly neutral and representative crypto index remains a subject of ongoing debate and refinement.