By
Steve Muchoki
April 19th, 2024
Derivatives giant CME appears set to launch 3 new crypto reference rates at the end of the month, in collaboration with CF Benchmarks.
CME Group Inc is launching three new crypto reference rates and real-time indices this month, according to reports. The world’s largest financial derivatives exchange will launch reference rates for the native tokens of the Avalanche, Tezos, and Filecoin blockchains. Furthermore, CME also announced that it is partnering with leading crypto index provider, CF Benchmarks, on this initiative.
The crypto reference rates for AVAX, XTZ, and FIL will go live on the CME from October 31st. The reference rates will show the US dollar price of each token, which will be published once a day at 4 pm. In addition, the respective real-time index, BST, will be available once per second, throughout the day, all year round.
Speaking on CME’s incoming crypto reference rates, CME Group Global Head of Cryptocurrency Products, Giovanni Vicioso, stated:
“Together with Bitcoin, Ether and other available cryptocurrencies, CME CF Reference Rates and Real-Time Indices will capture more than 92% of the investable cryptocurrency market capitalization.”
In addition, Vicioso also added:
“These new benchmarks are designed to allow traders, institutions and other users to access a much broader range of cryptocurrencies through a suite of products they are already familiar with, allowing them to confidently and more accurately manage cryptocurrency price risk, value portfolios or create structured products like ETFs.”
The inclusion of new reference rates serves up the possibility of potential additions to tradable crypto futures on the CME.
Several crypto-focused companies, including Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital, will provide data for these reference rates. Each featured token will trade on no less than two of these constituent crypto exchanges and trading platforms.
Other Executives on the CME Crypto Reference Rates
Sui Chung, CEO of CF Benchmarks, also weighed in on the crypto index provider’s joint reference rates initiative with CME Group. According to Chung, investors are increasingly seeking exposure to a broader range of digital currencies as they become more enlightened on crypto affairs. He also added that CME-initiated regulated investment products have made crypto accessible by a wider range of investors.
“Through its robust reference rates, CF Benchmarks is proud to be able to facilitate the creation of regulated financial products for this new asset class so investors can seek and manage exposure with confidence,” Chung concluded.
Bill Cannon, Head of Portfolio Management at Valkyrie Investments, also echoed some of Chung’s sentiments. According to him, the introduction of these new products at the global markets company is “both exciting and necessary”. This is because it adequately caters to investor demand for having a focused exchange that prioritizes safety and risk. Furthermore, Cannon also explains that adding more token reference rates bridges the ever-narrowing gap between traditional and decentralized financial markets. He added that the growing amount of investment currently pouring into the crypto space will build a stronger foundation for digital assets.