Indices are essentially statistical measures that track the performance of a group of assets. Learn more here.

From the Dow Jones Industrial Average (DJIA, or simply the Dow) to the Hang Seng Index (HSI), the world’s major stock market indices are vital benchmarks that reflect the performance of leading companies across regions. For beginning and veteran traders alike, such indices act as overarching market bellwethers that provide deeper insights into market trends and serve as tools for trading strategies, risk management and portfolio diversification.

Given their mass popularity, indices are widely traded in the forms of futures, options and 

 (ETFs), enabling traders to effortlessly hedge against volatility or speculate on market movements through their preferred instrument. In this article, we’ll explore the world’s biggest market benchmarks, their composition, significance in trading and their role in shaping global financial markets.

Indices are essentially statistical measures that track the performance of a group of assets. For example, by referring to the three major US indices, we can immediately tell how a particular segment of the market is performing, thanks to the snapshot provided by these indices. 

At their core, these indices provide a way to gauge market trends, manage risk and diversify portfolios by offering a broad view of different sectors or asset classes. They’re widely used in financial markets for investment strategies, and as benchmarks for evaluating performance.

While more popular indices typically track the prices of stocks, traders may also consider trading indices that take into account the performance of other asset types, such as commodities and fixed-income instruments (e.g., bonds).

How indices work — mechanics, composition and weightage

Beyond simple tracking, indices also serve as the basis for numerous financial products that enable traders to participate in broad market movements without needing to purchase individual assets. This unmatched level of accessibility makes indices crucial for both institutional and retail traders. To go one step further, the construction of an index — including the specific assets being included, and their weighting — can significantly impact the index’s behavior, and the extent to which it effectively represents its target market.

Overall, understanding these construction methodologies is vital for traders who want to accurately interpret index movements and make informed decisions. We’ll go into more detail on the inner workings of index trading in the subsequent sections of this article.

Index trading involves speculating on the price movements of a group of assets without directly owning them. This is typically achieved through financial instruments, such as contracts for difference (CFDs), futures or options. The following section provides a detailed explanation of the mechanics involved.

As previously mentioned, indices are composed of various assets, such as stocks, commodities or bonds, and their performance is tracked using different weighting methods. The most common methods include the following.

Now that you’re familiar with the technicalities involved with index composition, let’s dive deeper into the instruments involved with the trading of indices.

New to trading indices? No worries. Here’s a quick four-step process to help you get started.

In summary, index trading provides a way to participate in broad market movements through various financial instruments. It offers diversification and flexibility but requires careful 

, given the volatility associated with index trading.

Trading indices offers several compelling advantages that make them an attractive option for both novice and experienced traders. The following reasons are worth considering.

Indices can be categorized based on their coverage, weighting method and focus. 

Following are some of the main types of indices.

Index prices are influenced by a variety of factors that can be broadly categorized into economic indicators, company performance, market sentiment and external events. These factors interact dynamically, influencing the overall performance of indices and shaping market trends.

For traders looking to get started with index trading, 

 with deep liquidity and competitive spreads. For a limited time (from Mar 13 through Apr 12, 2025), we’re running a 

 in which traders can enjoy zero fees on selected index pairs, making it even more cost-effective to explore index trading.

Ultimately, trading indices can seem daunting, given their depth of assets and the mechanics involved. For example, the S&P 500 comprises hundreds of stocks, each with different amounts of weightage. If mega-cap stocks like Tesla were to face some form of volatility, there would definitely be an impact on the index. As such, beginning traders who are new to index trading must 

 prior to transacting with indices, given the risks involved with the use of leveraged instruments.

For those with a longer time horizon in mind, trading indices can certainly be useful, especially if you’re intending to 

 your entries over time when building up your position. Given the extent of diversification involved and the sheer amount of liquidity present, it certainly would make sense for any trader with a long-term bullish inclination to trade indices and hold their ETFs for the long haul.

With a reliable platform like Bybit Gold&FX, you’ll practically be spoiled for choice when it comes to navigating the diverse world of indices and other financial instruments. By empowering traders with access to real-time data, advanced charting tools and a user-friendly interface, Bybit Gold&FX helps traders make informed decisions when analyzing market trends and execute trades with precision.

Whether you're interested in tracking the performance of major stock market indices, exploring commodity indices or diversifying your portfolio with forex and gold, Bybit Gold&FX offers the necessary resources and support. The platform's focus on security and transparency provides traders with peace of mind, allowing them to concentrate on their investment strategies and capitalize on market opportunities. In essence, it transforms the complexities of index trading into an accessible and sleek experience.

Intermediate

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Indices: Trading the world’s biggest market benchmarks

Bybit celebrated the second anniversary of the Bybit Card at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch.

The S&P 500 dropped 1.39%, entering correction territory amid Trump’s tariff threats and trade war concerns. Gold surged to a record $2,988, driven by trade uncertainty, recession fears, and Fed rate cut expectations. The Coindesk Indices, which tracks the broader crypto market, fell by 0.90%, with Bitcoin and Ether down by 3.36% and 2.63% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is S, up 7.9% after 0xGasless launched AgentKit on Sonic, enabling AI-powered, gasless on-chain automation.

Sonic Labs (S), established in 2018, is an EVM-compatible Layer 1 blockchain built from Fantom, delivering over 10,000 transactions per second. Its native token, S, replaces FTM at a 1:1 ratio. The network prioritizes high performance, interoperability, and developer incentives. 

, enabling AI agents to execute on-chain actions with NLP-powered automation and gasless transactions via smart wallets. Developers can use Sonic AgentKit to build DeFi copilots or automate blockchain tasks and contribute custom tools through its open-source GitHub.

Check out the latest prices, charts, and data of 

Bybit celebrated the second anniversary of the 

 at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch. The exchange announced a limited-edition Premium Metal Card coming in 2025, alongside enhanced user experience features such as an improved rewards program, stronger fraud protection, and wearables connectivity. Backed by Mastercard’s global network, the Bybit Card supports multiple cryptocurrencies and offers seamless payments at any Mastercard-accepting merchant. Bybit reaffirmed its commitment to expanding crypto financial solutions and bridging digital assets with everyday transactions.

Yesterday, BTC Spot ETFs saw $180.9M in net outflows, with GBTC losing $12.7M and non-GBTC funds dropping $168.2M.

 $EDGE tokens to active traders on Solana and EVM chains. Users who traded on Jupiter, Odos, Hyperliquid, and more can check eligibility and claim by depositing funds and trading $1K spot volume via TWAP. Airdrop claims open in 19 days, with a raffle for 500 users to win 100K $EDGE tokens.

Beginner

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Bybit marks Bybit Card’s second anniversary with new features and expansion plans

Dogecoin Spot ETFs would offer a regulated vehicle for investors to capture Dogecoin's price movements without directly managing the cryptocurrency themselves.

 is defying expectations, transitioning from a crypto punchline to Wall Street legitimacy. In a landmark shift, the US Securities and Exchange Commission (SEC) has formally acknowledged Spot ETF applications for DOGE from heavyweight asset managers, including Grayscale and Bitwise, potentially catapulting the Shiba Inu–themed token into regulated markets. 

 (ETFs) would cement Dogecoin’s status as a serious investment vehicle, challenging perceptions of meme coins as fleeting novelties. 

This article delves into the mechanics of a Dogecoin Spot ETF, the current state of applications, their impact on the crypto market and the broader implications of such financial instruments.

A Dogecoin Spot ETF is a proposed exchange-traded fund that would directly hold Dogecoin as its underlying asset, allowing investors to gain regulated exposure to DOGE’s price movements without owning the cryptocurrency outright.

A Dogecoin Spot ETF would mirror the price movements of Dogecoin by holding the cryptocurrency directly, thereby enabling investors to capture its market performance without the complexities of purchasing, storing or managing the digital asset themselves.

Asset managers — in this case, Bitwise and Grayscale — would securely store actual Dogecoin tokens in 

 that often use cold storage solutions to reduce hacking risks. This responsibility is entrusted to custodians such as Coinbase Custody, which would safeguard Bitwise's Dogecoin holdings. These custodians specialize in cryptocurrency storage and employ robust security measures, such as multi-signature wallets and offline storage, to ensure the fund's value remains closely aligned with Dogecoin's current market price, while protecting the assets from potential threats.

Authorized Participants — usually large financial institutions — play a key role in maintaining this alignment by facilitating the creation and redemption of ETF shares. When demand surges, these institutions purchase Dogecoin from the open market and deposit it into the fund in exchange for newly issued shares. Conversely, they redeem shares by returning them to the fund for an equivalent amount of Dogecoin. This dynamic mechanism helps ensure that the ETF’s share price consistently reflects the underlying asset’s value.

Once issued, Dogecoin Spot ETF Shares would be traded on traditional stock exchanges, providing investors with an established and secure platform to gain exposure to Dogecoin. The ETF’s net asset value (NAV) would be determined by a comprehensive pricing mechanism that continuously reflects the current market price of Dogecoin. This process relies on the 

, which aggregates data from multiple reputable cryptocurrency exchanges. 

Using this standardized reference, the ETF ensures that fluctuations in Dogecoin's price — driven by market supply, demand and investor sentiment — are accurately captured. Consequently, the NAV is updated in real time, so it would provide investors with a transparent and precise representation of the fund’s true market value.

With this structured approach, a prospective Dogecoin Spot ETF promises a streamlined, regulated avenue for investors to participate in the dynamic cryptocurrency market, seamlessly integrating digital asset exposure with traditional financial systems.

In January 2025, REX Shares (in collaboration with Osprey Funds) filed with the SEC, seeking approval for a Dogecoin Spot ETF. The following month, Grayscale Investments advanced its crypto offerings by submitting SEC Form 19b-4 to launch its own Dogecoin Spot ETF, signaling an intent to diversify beyond traditional assets like Bitcoin and Ethereum. Shortly thereafter, Bitwise Asset Management, Inc. filed both S-1 and 19b-4 registration forms for a similar ETF, with its proposed fund set to hold Dogecoin as the primary asset and determine its net asset value using the CF Dogecoin-Dollar Settlement Price benchmark.

The SEC has officially acknowledged these filings, initiating a comprehensive review process. The Commission is known for its cautious approach in approving cryptocurrency-based ETFs, due to concerns over market volatility, liquidity and investor protection. However, this acknowledgment suggests a willingness to assess the potential of integrating Dogecoin into regulated financial products. The approval process is expected to be methodical, potentially taking up to 240 days from the initial acknowledgment. Bloomberg analysts 

Despite these promising regulatory developments, market reaction has been mixed. While the filing of Dogecoin Spot ETF applications has generated significant interest among investors, Dogecoin’s price experienced a decline after an initial increase following the announcements, indicating that investor sentiment could be influenced by broader market dynamics beyond ETF-related news.

Current impact of Dogecoin Spot ETF applications on the crypto market

Following the ETF application announcements, Dogecoin's price experienced significant fluctuations. Initially, there was a surge in optimism, with 

 within 24 hours (as of Feb 14, 2025) as investors anticipated potential institutional adoption. However, this uptick was short-lived, and within a week, Dogecoin's price declined by over 7%. This retracement underscores the inherent volatility of the cryptocurrency market — and suggests that while ETF filings can boost confidence, they also introduce speculative dynamics that may lead to rapid price corrections.

This mix of enthusiasm and caution among investors reflects the duality of a market in transition, balancing prospects of institutional legitimacy and the realities of speculative volatility. On the one hand, potential approval of a Dogecoin Spot ETF is viewed as a gateway for mainstream and institutional investors to engage with DOGE, potentially leading to increased liquidity and market stability. On the other, the subsequent price decline following the ETF announcements indicates that the market remains sensitive to speculative trading and profit-taking behaviors. Investors are advised to approach such developments with a balanced perspective, considering both the opportunities and risks inherent in cryptocurrency markets.

What will it mean if a Dogecoin Spot ETF application is approved?

Should the SEC approve a Dogecoin Spot ETF, it would mark a significant milestone in legitimizing meme-based cryptocurrencies within a traditional financial structure. Such an ETF would allow investors to gain direct exposure to Dogecoin's price movements through traditional investment platforms, which in turn could lead to increased institutional participation as it provides a regulated and familiar investment vehicle for entities that may previously have been hesitant to invest directly in crypto.

The introduction of a Dogecoin ETF is anticipated to enhance the cryptocurrency's liquidity and market stability. By facilitating easier access for a broader investor base, the ETF could lead to higher trading volumes and reduced price volatility over time. The legitimacy conferred by regulatory approval could potentially bolster investor confidence and attract more capital inflows into Dogecoin.

Dogecoin Spot ETF approval could also set a precedent for other meme-based cryptocurrencies, such as 

 (SHIB), to pursue similar financial instruments. The Shiba Inu community has been actively advocating for a SHIB-based ETF, highlighting factors like strong diversification prospects and growing investor demand. Notably, after the Spot Ethereum ETF approvals in July 2024, Shiba Inu's pseudonymous lead developer, Shytoshi Kusama, hinted that SHIB could be next in line. 

As with a Dogecoin Spot ETF, the introduction of a Shiba Inu Spot ETF would provide investors with regulated exposure to SHIB, potentially increasing its adoption and market presence. However, the approval process for such ETFs is complex and subject to stringent regulatory scrutiny. While the SEC has approved ETFs for major cryptocurrencies Bitcoin and Ethereum, the path for altcoins like Dogecoin and Shiba Inu remains uncertain. Factors such as liquidity, market maturity and regulatory perspectives will play crucial roles in any approval process.

Looking to capture the market and trade DOGE tokens? Bybit offers the 

The approval of a Dogecoin Spot ETF would mark a watershed moment for meme cryptocurrencies, offering regulated access to Dogecoin’s price movements and potentially stabilizing its volatile market through institutional investments. While initial price surges and subsequent corrections highlight speculative risks, long-term benefits would likely include enhanced liquidity, legitimacy and broader investor adoption. This precedent could pave the way for altcoins like Shiba Inu to pursue similar ETFs, though regulatory hurdles and market maturity remain critical barriers. 

Ultimately, a Dogecoin Spot ETF would bridge meme-driven crypto culture with traditional finance, providing the much-beloved dog-themed Dogecoin with a previously unattainable level of credibility.

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Dogecoin Spot ETF: A giant leap for Dogecoin's legitimacy

Solana dev shop Anza aims to double blockspace and enhance efficiency in 2025 through incremental upgrades like improving the Agave client, scaling Turbine, and adopting a faster hashing algorithm. 

The S&P 500 gained 0.49%, driven by a tech rebound after a weaker inflation report. Gold rose 0.63% to $2,933, driven by safe-haven demand, Fed rate cut bets, and central bank buying, with $2,950 as the next target. The Coindesk Indices, which tracks the broader crypto market, rose by 1.87%, with Bitcoin and Ether down by 0.22% and 2.38% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is TIA, up 12.1% following Citrea’s launch of bitcoin appchains with Celestia integration.

Celestia (TIA), launched in May 2017, is a modular blockchain network that provides a secure data availability and consensus layer, enabling blockchains to publish transactions and operate efficiently. 

, leveraging Celestia for scalable data availability while maintaining Bitcoin’s liquidity and security. The deployment of BlobstreamX enhances secure DA proofs for Bitcoin applications, reducing fees and increasing transactions. Developers can now build and test custom OP Stack rollups using Citrea’s detailed guide.

Solana dev shop Anza aims to double blockspace and enhance efficiency in 2025 through incremental upgrades like improving the Agave client, scaling Turbine, and adopting a faster hashing algorithm. The block limit will rise from 48M to 50M compute units, while further optimizations are expected as Solana’s read layer undergoes an overhaul.

Yesterday, BTC Spot ETFs saw $60.4M in net inflows, with GBTC losing $11.8M while non-GBTC funds gained $72.2M.

, backed by Polygon, Spartan Group, and HashKey, has launched its Loyalty Points Program, where users can earn Moon Beams by completing tasks and securing a spot in the confirmed airdrop. To participate, users must join the dashboard, claim badges, and complete regular tasks, with no cost to join.

Anza’s 2025 roadmap boosts Solana efficiency and blockspace

Bybit Learn

DeFi

Did you know that anyone who holds governance tokens can influence a project's future direction? Find out more about how governance tokens work in this article.

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, we can't talk about cryptocurrencies and 

 without mentioning the utility of governance tokens. While most crypto investors focus on 

, there are a wide range of tokens to consider, including 

While Bitcoin perennially remains a hot topic in the crypto scene, governance tokens preserve a critical aspect of 

. Not only can governance token holders help shape a protocol's future, but they also bring the community’s members closer. This guide offers a detailed overview of governance tokens and how they work.

Governance tokens are cryptocurrencies built on blockchain platforms, that grant holders the right to participate in the governance of a protocol.

Token holders have a say in proposing new features to a project and making changes to its governance system, depending upon their voting powers. The voting power of each token holder is proportional to the number of tokens they hold. The more governance tokens they hold, the more influence they have.

Governance tokens are designed to provide holders with ownership in fully decentralized protocols. Anyone who holds a governance token can influence a protocol’s future direction.

Most protocols accommodate a standard proposal submission process that lets developers make various proposals. In the event that a submission is taken to a vote, token holders can use their voting power to influence any potential change to the project. Governance tokens are considered to be a key decision-making mechanism within 

Centralized governance means that the board of directors or shareholders of a corporation has full discretion over decisions about strategic direction. Governance tokens gained popularity within the DeFi system (as opposed to centralized governance) as a way to govern the decentralized ecosystem, and to foster better community involvement, decentralization and decision-making without relying on centralized decision-makers.

, they’re outfitted with characteristics such as transparent distribution and immutable token ownership, which makes DAOs a perfect laboratory for the decision-making process.

When a governance proposal is taken to a vote, token holders get the opportunity to position their vote on the blockchain. In most cases, the voting power a token holder has is directly proportionate to the total number of tokens that they hold. Therefore, anyone who has 1,000 governance tokens will have double the voting power of a holder with 500 tokens. Nevertheless, each DAO has slightly different governing methods. The types of governance proposals for which token holders can vote typically include:

The following are the two distinct governance models for decentralized governance.

On-chain governance refers to the decentralized decision-making processes implemented directly on a blockchain. With on-chain governance, rules are essentially hard-coded into the protocol, which means that any decision will immediately be translated into readable codes. Projects such as 

 plan to use on-chain governance in the future. 

One of the core challenges includes the difficulty for token holders to be participating in decision-making processes, disagreements and conflicts that arise within a community that can result in a governance deadlock. This occurrence may lead to a potential hard fork, or blockchain splits which different governance approaches. 

Off-chain governance means that decision-making processes occur on a more social level before developers encode them into the protocol. At the moment, 

 primarily use off-chain governance. For instance, Ethereum obtains improvement protocols through 

, while developers on Bitcoin display their improvement proposals via the mailing list.

Many users believe that off-chain governance has more checks and balances in place than on-chain governance. Miners are responsible for deciding if proposals will be adopted. However, users can respond by selling their tokens or switching to another protocol.

Governance Tokens vs. Security Tokens vs. Utility Tokens

Governance tokens represent voting rights within DeFi protocols. They distribute the power of decision-making on a blockchain, from a completely centralized structure over to a community — token holders who are also protocol owners. Token holders are typically invested in the project's future because their decisions will influence the outcome of the project. 

Beyond voting rights, governance tokens distinguish themselves from their utility for staking purposes, yield farming and crypto loans. For example, the most popular governance tokens used include 

Security tokens, on the other hand, are designed to comply with securities regulations and offer investors protection and regulatory compliance across different jurisdictions. These tokens are usually backed by real-world assets, such as art, company equity, commodities and more. Security tokens facilitate the entry of investors into high-value assets by allowing them to own a fraction of them through the exchange of compliant security tokens.

A utility token is a digital asset mainly used for payment and for access to a product or service. These tokens boast adaptability and functionality for blockchain protocols or decentralized applications (

). For example, Binance Coin (BNB) serves its utility by giving holders the right to vote to list tokens, unlock trading rebates and enjoy priority for exclusive events and services, such as Binance Launchpad.

However, not every token is considered to be a currency. It's common for global supply chains to use these tokens in order to benefit from blockchains and 

Below is a brief table describing the differences between the three tokens being discussed.

Governance tokens protect a blockchain’s integrity by giving participants the right to make decisions and govern the platform. The value of these tokens comes primarily from governance rights to make changes to the existing protocol, which eventually benefits holders as the platform takes shape. These tokens are usually traded, swapped, exchanged and staked, which means possessing them can be considered a type of passive income stream.

In general, governance tokens become more valuable as projects get adopted 

 their value mostly gained from the success of the projects. While they may not be valuable initially, the value of governance tokens tends to appreciate proportionally to a project's growth, and increases further as the number of tokens in circulation reduces once a DeFi protocol initiates token burning.

If you've obtained governance tokens due to your investment in a blockchain project, you'll gain several benefits when using them, from better efficiency to more opportunities for collaboration.

The main benefit of governance tokens is that they accommodate decentralized governance. Developers who implement decentralization within their web3 projects can use governance tokens to do so. If these tokens weren't in place, DeFi solutions would mainly involve copious amounts of smart contracts.

Once a proposal is made, token holders are free to collaborate after holding discussions among themselves. Anyone who holds tokens can state how they’ll vote, while also obtaining incentives to collaborate with other community members who intend to vote the same way.

Another benefit of governance tokens involves the efficiency that they offer. Having a governance token gives community members a sense of involvement in the project, as they now have a say in it. This then leads to more active participation, since members want to see the project succeed, effectively resulting in more efficient decisions pertaining to the project.

While governance tokens are highly beneficial for web3 and blockchain projects in general, there are a few challenges for crypto companies issuing governance tokens to consider.

The most serious challenge involves the potential for malicious actors using their governance power to make decisions that only benefit themselves, as opposed to the overall community. If someone with a large amount of voting power is also a bad actor, the resulting decision for the protocol could be a poor one.

 are investors who make exceedingly large investments, which means that they gain access to a considerable amount of governance tokens. This can pose a problem, due to the sheer magnitude of their voting power — since decentralization is one of the primary purposes of blockchain projects.

At the moment, governance tokens don't come with much accountability. If a project fails, it's difficult to determine who's responsible for the failure.

, which focuses on full decentralization. The developers’ main goal for this governance token is to provide the Yearn Finance community with control over the project. This token also emphasizes the potential for developing a truly self-sufficient DAO.

, considered to be among the most popular lending platforms on web3. Anyone who holds MKR governance tokens can use them to vote on changes to the platform's economic rules.

 is the primary governance token for the Uniswap protocol. Token holders can take part in decision-making processes as they relate to the Uniswap platform. However, Uniswap developers still retain control over how the project will continue in the months and years ahead, which means that this protocol is more centralized than some others.

Initially designed for the purpose of rewarding early adopters, ENS governance tokens were 

, toward the end of 2020. Subsequently, the price of these tokens has increased significantly. Because of the large increase in their value, early adopters have been rewarded for the initial support they gave.

Anyone who holds a COMP token can use it to participate in Compound’s decision-making process, or to delegate their voting rights to someone else who can then vote on behalf of the token holder.

Even though it's difficult to predict the future of any aspect of the crypto industry, governance tokens have already proven their worth in the crypto space and will likely be critical to future industry growth. By facilitating DAOs, token holders can help create a lasting community, while also being sure to voice their own opinions. These communities can take many different shapes, from 

Because of the importance of governance tokens to decentralization, they will likely continue to grow in relevance depending upon how widely DeFi and DAO models are adopted. By providing the broader community with the ability to manage a project, a DAO allows that community’s decisions to directly influence a project’s success.

Anyone holding a governance token can vote on proposals, from changing reward distributions to altering the entire governance structure of a DeFi project or organization. Governance tokens foster active collaboration in ongoing decision-making processes among token holders. Despite their already-proven relevance, the value of these tokens is likely to grow further as adoption spreads.  

Governance Tokens: What Are They and How Do They Work?

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