Global markets firm and Chicago-based derivatives change CME Group plans to launch 11 new reference charges tied to particular crypto belongings. The reference charges and real-time indices bolstered by CF Benchmarks are sometimes leveraged by exchange-traded merchandise and different funding automobiles.
11 Crypto Assets Get Reference Rate Treatment From CME Group and CF Benchmarks
CME Group is including 11 extra cryptocurrencies to the agency’s present bitcoin and ethereum reference charges. Crypto reference charges just like the CME CF Reference Rates are sometimes used as a benchmark for exchange-traded funds (ETFs) and different monetary merchandise.
The new charges cowl polygon, solana, stellar, algorand, bitcoin money, cardano, chainlink, uniswap, cosmos, litecoin, and polkadot values. Pricing information for the benchmarks will probably be supplied by Bitstamp, Coinbase, Gemini, Itbit, Kraken, and LMAX. Each coin will leverage two exchanges, CME Group’s announcement discloses.
“As the digital asset market continues to expand, there is an increasing demand for reliable, standardized cryptocurrency pricing information based on robust, regulated reference rates,” Tim McCourt, CME Group’s world head of fairness and FX merchandise mentioned in an announcement. McCourt added:
These new benchmarks, which seize over 90% of the entire investible cryptocurrency market cap right now, are designed to permit merchants, establishments and different customers to confidently and extra precisely handle cryptocurrency value threat, value portfolios or create structured merchandise like ETFs.
The new reference charges for the 11 crypto belongings can be utilized as benchmarks for bundled and diversified funds, ETPs, and derivatives markets. Elliot Johnson the chief funding officer at Evolve ETFs defined on April 7, that the corporate already makes use of CME CF Reference Rates for its crypto exchange-traded funds.
“Evolve’s physical-crypto ETFs rely on CME CF Reference Rates to provide liquidity, tight tracking, and reliable NAV for investors,” Johnson defined. “We’re very excited to see the CME CF index family expanding to lay the foundation for new, innovative ETFs in this highly coveted asset class,” the Evolve government added.
CME Group’s new reference charges observe the launch of Micro Bitcoin (MBT) and Micro Ether futures (MET). MBT and MET contracts are “sized at one-tenth of their respective underlying tokens in size.” CME Group and CF Benchmarks plan to launch the 11 new crypto reference charges on April 25.
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