Chicago-based global markets firm and derivatives exchange CME Group plans to launch 11 new benchmark rates tied to specific crypto assets. Reference rates and real-time indices enhanced by CF Benchmarks are typically leveraged by exchange-traded products and other investment vehicles.
11 Crypto Assets Get CME Group Benchmark Rate Treatment and CF Benchmarks
CME Group adds 11 more cryptocurrencies to the company’s existing bitcoin and ethereum benchmark rates. Crypto benchmark rates like CME CF benchmark rates are often used as benchmarks 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. Benchmark pricing data will be provided by Bitstamp, Coinbase, Gemini, Itbit, Kraken, and LMAX. Each coin will leverage two exchanges, the CME Group announcement reveals.
“As the digital asset market continues to grow, there is a growing demand for reliable, standardized cryptocurrency pricing information based on robust, regulated benchmarks,” said Tim McCourt, Global Head of Cryptocurrency. CME Group’s equity and FX products in a statement. McCourt added:
These new benchmarks, which now represent over 90% of the total market capitalization of investable cryptocurrencies, are designed to enable traders, institutions and other users to confidently and more accurately manage the risk of cryptocurrency prices, price portfolios or create structured products like ETFs.
The new benchmark rates for the 11 crypto-assets can be used as benchmarks for pooled and diversified funds, ETPs and derivatives markets. Elliot Johnson, chief investment officer at Evolve ETFs, explained on April 7 that the company already uses CME CF benchmark rates for its crypto exchange-traded funds.
“Evolve’s physical crypto ETFs leverage CME CF benchmark rates to provide liquidity, tight tracking, and reliable net asset value to investors,” Johnson explained. “We are delighted to see the CME CF family of indices expanding to lay the groundwork for new, innovative ETFs in this highly coveted asset class,” added the Evolve executive.
CME Group’s new benchmark rates follow the launch of Micro Bitcoin (MBT) and Micro Ether (MET) futures contracts. MBT and MET contracts are “sized at one-tenth the size of their respective underlying tokens.” CME Group and CF Benchmarks plan to launch the 11 new crypto benchmark rates on April 25.
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