Pantera Capital, an investment fund that focuses on bitcoin, has announced an index it says will allow investors to track the cryptocurrency over a medium-term timeframe. Dubbed the BitIndex, it takes into account seven different factors that Pantera believes accurately charts bitcoin’s overall progress.

What’s interesting is Pantera Capital is not including price in the BitIndex, instead tracking other data sources that it believes lends to bitcoin’s technological progression. Pantera states unequivocally in its letter that the BitIndex gives people a longer-range view of bitcoin than what price indexes offer.

In the fund’s monthly report for June, Pantera stated: “While some other indices also offer guidance (such as trade in USD), we chose not to include them because of unreliable data, limited availability, or other statistical problems.”

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Pantera’s letter does not indicate how it calculates the merchant adoption metric, although statistics for hashrate, user adoption by wallets and transaction volume are publicly available from a number of different data sources. Information from websites such as GitHub for developer interest, as well as Wikipedia and Google to identify mainstream interest and popularity, is also readily available.

BitIndex offers a different look at technological aspects of bitcoin rather than infatuation with the cryptocurrency’s valuation. In fact, the firm says that it is value distortions that influenced the creation of BitIndex, specifying, “price manipulation at Mt. Gox and/or the Chinese and in the first quarter of 2014 due to the collapse of Mt. Gox”, as problems defining bitcoin’s true worth.

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