Derivatives Exchange Giant CME Group Adds 11 New Cryptocurrency Reference Rates

newsbtcPublié le 2022-04-10Dernière mise à jour le 2022-04-10

Résumé

CME Group is adding 11 more cryptocurrencies to the firm’s existing bitcoin and ethereum reference rates.

Derivatives Exchange Giant CME Group Adds 11 New Cryptocurrency Reference Rates

Global markets company and Chicago-based derivatives exchange CME Group plans to launch 11 new reference rates tied to specific crypto assets. The reference rates and real-time indices bolstered by CF Benchmarks are typically leveraged by exchange-traded products and other investment vehicles.

11 Crypto Assets Get Reference Rate Treatment From CME Group and CF Benchmarks

CME Group is adding 11 more cryptocurrencies to the firm’s existing bitcoin and ethereum reference rates. Crypto reference rates like the CME CF Reference Rates are often used as a benchmark for exchange-traded funds (ETFs) and other financial products.

The new rates cover polygon, solana, stellar, algorand, bitcoin cash, cardano, chainlink, uniswap, cosmos, litecoin, and polkadot values. Pricing data for the benchmarks will be provided 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 global head of equity and FX products said in a statement. McCourt added:

These new benchmarks, which capture over 90% of the total investible cryptocurrency market cap today, are designed to allow traders, institutions and other users to confidently and more accurately manage cryptocurrency price risk, price portfolios or create structured products like ETFs.

The new reference rates for the 11 crypto assets can be used as benchmarks for bundled and diversified funds, ETPs, and derivatives markets. Elliot Johnson the chief investment officer at Evolve ETFs explained on April 7, that the company already uses 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 explained. “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 executive added.

CME Group’s new reference rates follow 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 rates on April 25.

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