Global Markets firm and Chicago-based derivatives exchange CME Group plans to launch 11 new reference rates tied to specific crypto assets. Reference rates and real-time indices backed by CF benchmarks are commonly utilized by exchange-traded products and other investment vehicles.
11 Crypto Assets Receive Reference Rate Treatment from CME Group and CF Benchmarks
CME Group is adding 11 cryptocurrencies to the firm’s existing bitcoin and ethereum reference rates. Cryptocurrency reference rates, such as the CME CF Reference Rate, 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 benchmark will be provided by Bitstamp, Coinbase, Gemini, Itbit, Kraken and LMAX. The CME Group announcement revealed that each token will utilize two exchanges.
“As the digital asset market continues to expand, there is a growing need for reliable, standardized cryptocurrency pricing information based on robust, regulated reference rates,” Tim McCourt, global head of equities and foreign exchange products at CME Group, said in a statement. stated in the statement. McCourt added:
These new benchmarks represent more than 90% of the total market capitalization of investable cryptocurrencies today and are designed to allow traders, institutions and other users to confidently and more accurately manage cryptocurrency price risk, price portfolios or create structured products such as ETFs.
New reference rates for 11 crypto-assets can be used as benchmarks for bundled and diversified funds, ETPs and derivatives markets. Elliot Johnson, chief investment officer at Evolve ETFs, explained on April 7 that the firm already uses the CME CF reference rate for its crypto exchange-traded funds.
“Evolve’s physical crypto ETFs rely on the CME CF Reference Rate to provide investors with liquidity, tight tracking and reliable NAV,” Johnson explained. “We are excited to see the expanding family of CME CF indices lay the foundation for a new and innovative ETF in this highly sought-after asset class,” added the Evolve executive.
CME Group’s new reference rate follows the launch of Micro Bitcoin (MBT) and Micro Ether futures (MET). The MBT and MET contracts are “one-tenth the size of their respective base tokens.” CME Group and CF Benchmarks plan to launch 11 new crypto reference rates on April 25.
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