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 Benchmark Rate Treatment From CME Group 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. 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 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 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 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 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 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.
