CME, CF Benchmarks, Launch New Crypto Indices

CME Group and CF Benchmarks have unveiled plans to publish three new cryptocurrency benchmarks from October 31.

The firms will publish reference rates and real-time indices in Avalanche, Filecoin and Tezos and the new products will not be tradeable. They will provide the US dollar price of each digital asset, published once-a-day at 4 pm London time, while each respective real-time index will be published once per second, 24 hours a day, 365 days per year. Several crypto exchanges and trading platforms will provide pricing data for the new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital. Each coin will trade on a minimum of two of these constituent exchanges.

“Together with Bitcoin, Ether and other available cryptocurrencies, CME CF Reference Rates and Real-Time Indices will capture more than 92% of the investable cryptocurrency market capitalisation,” says Giovanni Vicioso, the recently-appointed global head of cryptocurrency products at CME. “These new benchmarks are designed to allow traders, institutions and other users to access a much broader range of cryptocurrencies through a suite of products they are already familiar with, allowing them to confidently and more accurately manage cryptocurrency price risk, value portfolios or create structured products like ETFs.”

Sui Chung, CEO of CF Benchmarks, adds, “Investors are increasingly seeking exposure to a wider range of cryptocurrencies as they learn more about the potential of the digital asset class. Regulated investment products, spearheaded by CME Group’s crypto derivative suite, have helped open crypto to a much wider range of investors.”

CME and CF Benchmarks already offer benchmarks and indices in the major cryptocurrencies, both in euro and US dollar terms.

“The introduction of new products at CME Group is both exciting and necessary, as investors demand a focused exchange where safety and risk are a primary priority,” says Bill Cannon, head of portfolio management at Valkyrie Investments. “This expansion provides functional accessibility to a variety of new and unique financial products, bridging the ever-narrowing gap between traditional and decentralised financial markets. We find that these types of innovations, especially at the current point in the cycle, will help build a stronger foundation in digital assets and create new channels of growth considering the amount of investment currently entering the sector.”