Bybit Hack by the Numbers

Read now
Data+ Kaiko Data
  1. Home
  2. Insights

  3. Moving Beyond Bitcoin with the KT5 Index

Moving Beyond Bitcoin with the KT5 Index

Indices

Written by Adam Morgan McCarthy

20/02/2025

    Welcome to the index in focus!

    Welcome to the Index in Focus! This week we’re looking at one of Kaiko Indices Blue Chip product, the Kaiko 5 Index. The benchmark tracks the top five assets in our list of vetted tokens, while still offering diversified returns. In the full report we explore:

    • The performance of EGLX and its constituent assets.

    • How the U.S. election was a key driver of growth

    • The outlook for U.S. related assets.

    Introduction

    The KT5 (Kaiko Top 5) is a multi-asset benchmark designed to track leading digital assets while minimizing concentration risk and single points of failure. As of the first quarter of 2025, its constituent assets are BTC, ETH, SOL, DOGE, and XRP. The chart below provides a breakdown of the weighting as of the last rebalance.

    Screenshot 2025-02-20 at 15.18.09

    The KT5 achieved log returns of over 160% since the beginning of 2023, outperforming ETH by around 50 percentage points. Although the index might have underperformed BTC recently, it has outperformed in early 2023, and in the month after the U.S. election, the index grew at a greater rate than BTC.

    Screenshot 2025-02-20 at 15.37.15

    Busting correlation myths

    Skeptics of crypto indices argue that the industry is too highly correlated, diminishing the value of index investing. However, an analysis of the return correlations among the constituent assets in the KT5 reveals significant variation.

    While some pairs, such as BTC and ETH, exhibit high correlation, this is not universally true. For example, SOL has a very low correlation (0.06) with DOGE, and XRP’s correlation with SOL is just 0.18.

    These differences demonstrate that crypto indices can offer meaningful diversification benefits. Explore the full report below.

    Download the Report.

    Download



    Explore kaiko data

    Our industry-leading research is the direct result of combining our proprietary data with world-class in-house experts. Bringing the very best of Kaiko’s people and data together, we unlock the unique insights that form the basis for our discoveries and analysis. We believe in doing so, our data speaks for itself, helping both our clients and the wider industry get a better understanding of the crypto ecosystem, and the evolving trends and patterns in motion at a regional and global scale.

    • Market Explorer

      Price and transaction volume for centralized exchanges.

      Learn more

    • Market Depth

      All bids and asks on an order book

      Learn more

    • Blockchain Monitoring

      All users, all transactions, and all history for blockchain wallets.

      Learn More

    Never Miss An Analysis

    Get our research twice a week, directly to your inbox.

    More From Kaiko Research

    • DeFi

      17/03/2025 Data Debrief

      Anatomy of market manipulation in DeFi

      Bitcoin bucked its downtrend last week adding 3% while the S&P 500 briefly entered correction. Binance secured its first institutional investment from Abu Dhabi’s MGX group, the largest ever single investment in a crypto firm at over $2bn. Elsewhere, Coinbase prepares for 24/7 BTC and ETH futures trading, as traditional platforms jostle to offer round the clock services.

      Written by The Kaiko Research Team

    • Stablecoin

      10/03/2025 Data Debrief

      Stablecoin Adoption Amid New Rules

      Bitcoin experienced sharp swings last week after President Trump announced a less ambitious-than-expected strategic crypto reserve. Meanwhile, the U.S. imposed tariffs on Canada and Mexico but later granted temporary partial exemptions until next month. In another development, the SEC dropped its case against Kraken, potentially paving the way for its IPO.

      Written by The Kaiko Research Team

    • Indices

      06/03/2025 Index in Focus

      A Standard for Benchmarking Success

      This week, we’re analyzing the Kaiko 10 Index (KT10), part of our multi-asset Blue Chip indices. With a compound annual growth rate of nearly 60% since inception, the index offers a competitive returns that capture the broader markets performance without sacrificing.

      Written by Adam Morgan McCarthy

    • Macro

      03/03/2025 Data Debrief

      Altcoin volatility surges on strategic reserve news

      After one of the most volatile weeks in crypto, Bitcoin has stabilized above $90K, boosted by US President Donald Trump’s announcement of the creation of a strategic crypto reserve. Meanwhile, OKX’s operator pleaded guilty to U.S. anti-money laundering violations and agreed to a $505 million penalty, and the SEC closed its investigation into Uniswap Labs.

      Written by The Kaiko Research Team