The Chicago-based global markets and derivatives exchange company CME Group plans to launch 11 new reference rates related to specific crypto assets. Real-time reference rates and indices supported by CF Benchmark are commonly used on exchange traded products and other investment instruments.
11 crypto assets receive reference rate treatment from CME Group and CF benchmark
It’s the CME Group adding 11 more cryptocurrencies in addition to the existing reference rates for bitcoin and ethereum companies. Crypto reference rates such as CME CF reference rates are often used as a benchmark for exchange traded funds (ETFs) and other financial products.
The new rates cover the values of polygon, solana, stellar, algorand, bitcoin cash, cardano, chainlink, uniswap, cosmos, litecoin and polkadot. Price data for benchmarks will be provided by Bitstamp, Coinbase, Gemini, Itbit, Kraken and LMAX. Each coin will use two exchanges, the CME Group announcement reveals.
“As the digital asset market continues to expand, there is a growing demand for reliable, standardized cryptocurrency pricing information based on robust, regulated reference rates,” said Tim McCourt, global head of CME Group’s equities and foreign exchange products. McCourt added:
These new benchmarks, which cover more than 90% of the total market capitalization of cryptocurrencies that can be invested today, are designed to enable traders, institutions and other users to reliably and accurately manage cryptocurrency price risk, price portfolios or create structured products such as ETFs.
The new benchmarks for 11 crypto assets can be used as benchmarks for related and diversified assets, ETPs and derivatives markets. Elliot Johnson, chief investment officer at Evolve ETFs, explained on April 7 that the company already uses CME CF reference rates for its cryptocurrency trading funds.
“Evolve’s physical-crypto ETFs rely on CME CF reference rates to ensure liquidity, strict monitoring and reliable NAV for investors,” Johnson explained. “We are very excited to see the CME CF index family expand to lay the groundwork for new, innovative ETFs in this highly coveted asset class,” added Evolve CEO.
The new CME Group reference rates follow to launch Micro Bitcoin (MBT) and Micro Ether Futures (MET). MBT and MET contracts are “the size of one tenth of their respective basic tokens in size.” CME Group and CF Benchmarks plan to launch 11 new reference rates for cryptocurrencies on April 25th.
What do you think about CME Group adding 11 new reference rates for cryptocurrencies? Tell us what you think about this topic in the comments section below.
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