CRIX @Royalton Partners

Explore the following resources for more information: Visit CRIX’s website or check out the S&P Global’s detailed page on CRIX .

In 2021, CRIX was acquired by Royalton Partners and transitioned from an open-source initiative to a proprietary project, with a patent application currently underway.

About CRIX

The Royalton CRIX Crypto Index, a brainchild of Professor Wolfgang Karl Härdle and Simon Trimborn from the IRTG 1782, became part of Royalton Partners’ portfolio in 2021. Unlike traditional indices with a fixed number of constituents, CRIX dynamically adjusts its constituents based on prevailing market conditions. This innovative approach results in milder fluctuations in returns, reduced tracking error, and lower transaction costs for tracking portfolios, positioning CRIX as a superior indexing solution.

My role

My role focused on developing a reliable administration pipeline for the Royalton CRIX Crypto Index.

My contributions

My involvement at Royalton has been technical and methodological.

CRIX originated from a research project, thus I was first responsible for auditing the code and making relevant changes and optimization, such as:

• Designing and implementing a microservice architecture.
• Establishing a data pipeline with ETL processes, integrating data provider APIs, and ensuring database integrity and reporting.
• Conducting backtesting to verify the index’s performance.

Then, I constructed a comprehensive CI/CD pipeline for the CRIX index, encompassing code review protocols, unit testing, GitHub integration, and the automation of monthly reports through a custom app, enhancing its reliability. Additionally, I managed communications with the index board.

On the methodological front, I introduced a liquidity criterion to the CRIX reconstitution optimization problem, facilitating its tracking with a larger portfolio. I also defined robustness checks and criteria for hyperparameter selection for CRIX and contributed to the patent application process.

These enhancements have empowered Royalton Partners AG to rebalance CRIX effortlessly and have provided them with extensive data reports for informed decision-making.