Derivatives Exchange Giant CME Group Adds 11 New Cryptocurrency Reference Rates – CME Group, a global markets firm and derivatives exchange based in Chicago, aims to create 11 new reference rates connected to individual crypto assets. Exchange-traded instruments and other investment vehicles usually use the reference values and real-time benchmarks provided by CF Benchmarks.
The CME Group is expanding its cryptocurrency reference rates beyond bitcoin and ethereum. Exchange-traded funds (ETFs) and other financial instruments frequently use crypto reference rates like the CME CF Reference Rates as a benchmark.
Solana, polygon, stellar, chainlink, bitcoin cash, algorand, cardano, uniswap, cosmos, polkadot, and litecoin values are all included in the revised rates. Gemini, Bitstamp, Itbit, Coinbase, LMAX and Kraken will contribute pricing data for the benchmarks. According to CME Group’s release, each coin would be traded on two exchanges.
In a statement, Tim McCourt, CME Group’s global head of equity and FX products, stated, “As the digital asset market continues to grow, there is an increasing demand for trustworthy, regulated cryptocurrency pricing information based on strong, regulated reference rates.”
“These new benchmarks, which now account for over 90% of the entire investible cryptocurrency market value, are intended to help traders, institutions, and other users handle cryptocurrency price risk, price portfolios, and develop structured products like ETFs with greater confidence and accuracy.”
The 11 new crypto asset reference rates can be used as benchmarks for bundled and diversified funds, ETPs, as well as derivatives markets. Evolve ETFs’ chief investment officer, Elliot Johnson, stated on April 7 that the company’s crypto exchange-traded funds already use CME CF Reference Rates.
“To offer liquidity, tight monitoring, and a credible NAV for investors, Evolve’s physical-crypto ETFs depend on CME CF Reference Rates,” Johnson explained. “We’re very thrilled to see the CME CF index family develop, laying the groundwork for fresh, innovative ETFs in this highly wanted asset class,” the Evolve CEO continued.
Derivatives Exchange Giant CME Group Adds 11 New Cryptocurrency Reference Rates – The new reference prices from CME Group come after the debut of Micro Ether futures (MET) and Micro Bitcoin (MBT). The MET and MBT contracts are “one-tenth the size of their respective underlying coins.” The 11 new crypto reference rates will be released on April 25 by CME Group and CF Benchmarks.